If you’ve ever woken up in a panic thinking, “Oh no, did I pay that PAYE?” at 2 am, then this one’s for you.
This article talks about why setting up a PAYE direct debit could be one of the easiest, smartest things you do for your business this year. Because honestly, this little change could save you time, hassle, and possibly a stern letter from HMRC. What’s not to like?
What is a PAYE direct debit?
A PAYE direct debit is a way to automatically pay your PAYE (Pay As You Earn) tax to HMRC each month. Rather than remembering to manually log in and make the payment, HMRC will simply collect the correct amount based on your monthly Real Time Information (RTI) submission. It’s all very civilised.
Once it’s set up, your payment is taken on the 23rd of each month (or the next working day) and will show up on your bank statement as ‘HMRC SDDS’.
Why set up a PAYE direct debit?
Apart from the general joy of having one less thing to remember, setting up a PAYE direct debit brings some very real benefits:
- You save time: less admin is always a win.
- You reduce the risk of late payment penalties: we like our money to go to HMRC when it’s due, not when we remember!
- Your payments are correctly allocated: a surprisingly common issue with manual payments.
- You avoid unnecessary stress: especially if you’ve ever had to make a last-minute scramble on payment day.
Honestly, if you’re paying PAYE manually and could be automating it… why not make your life that little bit easier?
| Want us to set up your PAYE for you? Get in touch and we’ll sort it. |
How to set up your PAYE direct debit
Now, this bit does involve a few clicks, but once it’s done, you can forget about it and enjoy the sweet sound of organised finances.
Step-by-step instructions:
Step 1: Log in to your Government Gateway account.
Step 2: Go to your Business Tax Account. (This shows all taxes registered under your business (e.g. Corporation Tax, PAYE, VAT)).
Step 3: Click into the PAYE section.
Step 4: Look for one of the following options:
- “Manage your Direct Debit” or
- “Set up your Direct Debit”
| Can’t see these? Try this: Click on ‘Annual statements and payment record’.Scroll down the right-hand side and look for:“Manage your Direct Debit” “Make an early PAYE payment” |
Step 5: Click ‘Manage your Direct Debit’ and follow the on-screen instructions.
Boom, done!
A few important things to know
- Only someone with bank signatory authority and access to your business’s online banking can complete this setup.
- Sadly, we at JVCA can’t do this bit for you (HMRC rules), but we can make sure your payroll and RTI submissions are accurate and on time.
What if I need help with payroll or PAYE?
Well, that’s exactly what we’re here for. At JVCA, we’re all about making your business life easier. From PAYE and payroll headaches to anything else finance-related, we’ve got your back.
Drop us a line at: [email protected].
