Requiring payment of VAT and PAYE return liabilities by Direct Debit
Read the full outcome
Detail of outcome
The government has published a summary of responses to the consultation on requiring businesses to pay VAT and PAYE by Direct Debit. The document summarises the feedback received and sets out the government’s response.
The government is committed to reducing tax debt and supporting businesses to pay the right tax on time. Having listened to the feedback received, the government will take a more flexible approach. Businesses will be required to have a Direct Debit mandate in place by April 2029 but will retain the flexibility to pay by another method before the payment due date.
Original consultation
Consultation description
The Government wishes to consult on ways timelier PAYE and VAT payments can be achieved through greater use of Direct Debit. It welcomes views from individuals, businesses or organisations who could be affected by changes to the way these taxes are collected as well as tax agents, representative bodies, charities and voluntary organisations that help people with their tax affairs.