Payment by direct debit will be mandatory from 3 August 2015 for all new time-to-pay arrangements.
Payment by direct debit will be mandatory from 3 August 2015 for all new time-to-pay arrangements. HMRC explain in their Working with tax agents blog that they are doing this because:
- it is more cost effective and secure than other payment methods;
- it removes the chance that the taxpayer will forget to pay;
- payments are more likely to be correctly allocated;
- it reduces the need for further contact; and
- it protects the taxpayer.
If a taxpayer is unable to set up a direct debit, HMRC may agree payment by other methods. Existing non-direct debit agreements are not affected.
More information is at www.lexisurl.com/ttpmdd.
