Direct Debits for Tax Bills


Clients are often aware that they can pay their VAT bills by direct debit, but are often unaware that they can pay their Corporation Tax and PAYE via direct debit too!

Clearly the advantage of paying the company’s tax bills via direct debit is that the Directors won’t forget to pay the tax bills – therefore reducing the possibility of receiving late payment fines and interest.

You simply set up the direct debit through your company’s HMRC online account.

For your Corporation Tax you should allow five working days from the date you first set up the direct debit to when the first payment can be taken.  Every subsequent year you should allow three working days for the payment to arrive with HMRC.  The payment will appear as HMRC NDDS on your bank statement.

For PAYE, you should set up the direct debit at least four working days before your payment due date.

HMRC will usually take the payment either:

  • shortly after the 22nd of the month or
  • four 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 three working days before the payment is collected. The payments will show on your bank statement as HMRC SDDS.

You can pay the following PAYE payments through direct debit:

  • Full Payment Submission (FPS)
  • Employer Payment Submission (EPS)
  • Construction Industry Scheme (CIS)
  • Apprenticeship Levy (AL)
  • Class 1A National Insurance
  • Earlier Year Update

If you have any queries regarding the direct debits please contact Jackie or Andrew.

Castletons Accountants

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