Variable payment plan goes live on 19 September
On 19 September HMRC’s new “variable payment plan” for payroll deductions and liabilities goes live. How does it differ from current payment arrangements and how can you sign up for it?
The current system for paying monthly payroll deductions by direct debit (DD) requires employers to set up a new direct debit for each payment. This cumbersome arrangement won’t be necessary when HMRC’s “variable payment plan”, launching on 19 September 2022, is up and running.
The new DD arrangement is voluntary and takes up to five days to put in place. If an employer signs up for it HMRC will be authorised to collect the monthly taxes (PAYE, NI contributions, CIS deductions, and apprenticeship levy) by DD in varying amounts on a continuous basis without fresh instructions from the employer. The service can be accessed through Pay employers’ PAYE or your business tax account and employers' PAYE service.
Related Topics
-
New two-tier mileage rates for electric vehicles
The amount that employers can reimburse staff for business travel in company cars changes from 1 September 2025. What are the new rates, and why is this update different to previous ones?
-
Tax trap when renting to relatives
Your cousin is in financial difficulties and has nowhere to live. One of the properties you let is vacant and you’ve offered it to him as a temporary home. You’ll only charge him a minimal rent. How might this negatively affect your tax position?
-
Late payment interest to be cut
A cut to the Bank of England base rate means there will be another reduction in HMRC's penalty interest rates. What are the new charges and when will they take effect?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.