New ways to pay payroll taxes


HMRC has just launched its “variable payment plan” for employers. What is it and is it something you should consider signing up for?

Pay payroll by DD

HMRC introduced a “Variable payment plan” for PAYE and other taxes on September 19, 2022 in response to comments on its current system. HMRC can collect variable payroll taxes via direct debit (DD) without a new instruction, thanks to this optional service for employers.

Taxes covered

In general, all taxes, levies and other payments that you submit online to HMRC as part of your payroll process are covered. This includes NI contributions, such as Class 1A due on benefits in kind, deductions from the construction sector plan and the apprenticeship levy in addition to PAYE tax.


Reports covered

The DDs will reflect any liabilities for PAYE and other taxes that were included in your complete payment submissions, employer payment summaries, and previous year updates. When you submit your benefits and expenses annual declaration, your Class 1A NI responsibility, if any, will be considered (due by 6 July following the end of each tax year).

Frequent paydays

The DD will be collected each month on the 23rd, or the following day if that day is not a banking holiday. The DD will match all liabilities for the month even if you submit multiple reports during a tax month, let’s say because you have employees that are paid on a weekly basis. HMRC has pledged that the total of the taxes and other fees stated in your reports will never be exceeded by the amount it will collect.


Up to three days prior to the DD being taken, you may check the amount. You should have just enough time to cancel the DD and work out the problem with HMRC thanks to this.

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New ways to pay payroll taxes
New ways to pay payroll taxes

Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We, at Naail & Co, are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.