How to set up a Direct Debit with HMRC

To set up a Direct Debit for your PAYE and NI payments, you’ll first need to ensure your HMRC online account is set up for PAYE. Please follow the relevant steps below:

If you already have an HMRC online account for Corporation Tax (CT) or VAT:

1. Log in to your Government Gateway account.
2. If PAYE for Employers is not listed, scroll to the bottom of the page and click ‘Services you can add’, then select ‘PAYE for Employers’.
3. Enter your PAYE reference and Accounts Office reference (these can be found on correspondence from HMRC).
4. HMRC will send a letter within 10 days containing an activation code.
5. Once you receive the letter, log in to HMRC Online Services and enter the activation code within 28 days to complete the setup.

If you do not yet have an HMRC online account:

1. Go to HMRC Online Services and click ‘Create sign-in details’.
2. Enter your email address, and HMRC will send you a verification code. Enter this code to proceed.
3. Provide your name and create a password for your account.
4. Your User ID will be displayed on the screen and sent to your email – please save this information securely.
5. Select ‘Organisation’ when prompted and set up security preferences (you may use Caldwell Penn’s mobile number for code verification if applicable).
6. When asked for ‘Organisation details’, choose ‘PAYE for Employers’ and enter your PAYE reference and Accounts Office reference.
7. HMRC will send a letter within 10 days containing an activation code.
8. Once you receive the letter, log in to HMRC Online Services and enter the activation code within 28 days to complete the setup.

Setting Up a Direct Debit for PAYE/NI:

1. Log in to your HMRC Online Services account.
2. Go to ‘Employers’ PAYE’.
3. Click on ‘Set up a Direct Debit’.
4. Follow the on-screen instructions to provide:
   – Your business bank account details (the account must allow Direct Debits).
   – Confirmation that you are authorised to set up the Direct Debit.
5. Confirm and submit the Direct Debit setup.
6. HMRC will send a confirmation email once the setup is complete.

Important Notes:

• The Direct Debit will only collect the amount due for each period—HMRC does not take payments automatically unless a return has been submitted.
• Payment is taken on the 22nd of the month (or the next working day) after the PAYE deadline (19th of the month).
• You must set up the Direct Debit at least 6 working days before your first payment is due.

If you have any questions or need further assistance, please do not hesitate to get in touch.