Paying HMRC by Direct Debit

Now, you can pay your monthly or quarterly PAYE bill (Tax and National Insurance Contributions) to HMRC by Direct Debit through our services. We are here to assist you every step of the way.

Paying your bills automatically has never been easier. 

You can set up a Direct Debit through your HM Revenue and Customs (HMRC) online account for either paying your bills automatically or making a single payment.

HMRC ensures automatic collection of the payment from your bank account based on the amount in your Full Payment Submission (FPS). All you need to do is set your direct Debit only once.

You can easily set it up four working days before your payment due date.

If you are someone who chooses to make the payment on a quarterly basis, you should submit a monthly return. HMRC will collect your total payment every three months without any hassle.

HMRC generally collects the payment either shortly after the 22nd of the month or four working days after you file your payroll return. HMRC follows an efficient payment collection system that updates the individuals regarding the date and amount within three working days before the payment is collected. The payment is reported as ‘HMRC SDDS’ on your bank statement.

You can use Direct Debit to pay the following charges:

1. Full Payment Submission (FPS)
2. Employer Payment Submission (EPS)
3. Construction Industry Scheme (CIS)
4. Apprenticeship Levy (AL)
5. Class 1A National Insurance
6. Earlier Year Update

Certain charges that are not covered under Direct Debit services are:

• Any interest or penalties owed by the individual
• Return payment over £20 million

Making a single payment to HMRC using Direct Debit services is made easy by dhpayroll.

In this mode, you will need to set up a payment every single time you pay HMRC using this type of Direct Debit.

You may choose to set up the single payment mode at least five working days prior to the return due date on the first occasion and three working days prior to your return due date in the following payments. The payment will be reported in your bank statement as ‘HMRC NDDS.’

All you need to know about Reference Number

Your reference number will contain a 13-character accounts office number as your payment reference. You can find it in your HMRC online account or on the letter sent by HMRC to you at the time of registration as an employer or the front of your payment booklet, in case you have it.

You will need to add extra numbers to your 13-character accounts office reference number every time you make an early or late payment.

Make sure to use the right reference number, or it may get delayed.

Explore the link below to discover additional information and arrange your direct debit with HMRC:

https://www.gov.uk/pay-paye-tax/direct-debit