Specialist Tax News

Paying your tax by Direct Debit online

We often get asked by our clients “Instead of having to pay self-assessment tax twice a year or corporation tax in one lump sum, how can I spread the payments to HMRC more easily?” HMRC has two separate online Direct Debits:

VAT Online Direct Debit service

This service can be used for making you online VAT return payments and any balancing payment for your Annual Accounting Scheme; and

Direct Debit online for other taxes

This service can be used if you are registered for one or more of the following online services – Self Assessment, PAYE for employers, Corporation Tax, Construction Industry Scheme. HMRC recommends you pay by Direct Debit because:

  • Direct Debit provides certainty about when your payment will reach HMRC.
  • Only the amount you request to pay will be collected by Direct Debit. HMRC won’t collect any other outstanding amounts in this way.
  • It puts you in control, making it less likely you’ll miss a payment deadline.

Please talk to us if you are interested in setting up a direct debit to HMRC and we will point you in the right direction.

Leave a Reply