In response to customer feedback, HMRC have now added a function so employers’ can pay their PAYE liabilities by direct debit. You only need to set this up once and payment will be automatically collected going forward.

This is restricted to employers only and there is no scope for agents to do this on your behalf.


This service can be access through Pay employers’ PAYE or through the business tax account dashboard.

A new link ‘Set up Direct Debit’ has been introduced and this allows customers to authorise HMRC to collect payment based on their return submissions.

Payment will be collected:-

  • shortly after the 22nd of the month or
  • 4 working days after you file the return (if you file it after the 19th of the month)


HMRC will tell you the date and amount no later than 3 working days before the payment is collected. The payments will show on your bank statement as ‘HMRC SDDS’.
If signed up to variable payment plan, the following charges will be collected on receipt of the returns to HMRC:-

  • Full Payment Submission
  • Employer Payment Summary
  • Construction Industry Scheme
  • Apprenticeship Levy
  • Class 1A National Insurance
  • Earlier Year Update


Once setup, the link will change to ‘Manage your Direct Debit’ and employers’ can view, change or cancel the direct debit online.