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
-
Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
-
HMRC clarifies summer holiday VAT cut
HMRC has published further guidance on the temporary VAT reduction for certain activities during the school summer holidays. The additional detail helps businesses determine which supplies qualify for the relief and, importantly, which do not. What do you need to know?
-
Electronic VAT return and payment due