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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Irregular Payments: Self Assessment: Voluntary direct payments

The aim of the Voluntary Direct Payments (VDPs) procedure is to give customers the opportunity to settle a liability voluntarily. The liability can relate to

  • in year PAYE coding adjustments
  • PAYE underpayments that cannot be coded out
  • certain one-off or single year only liabilities (for example, Capital Gains Tax).

If the customer prefers to make a voluntary payment rather than have their

  • PAYE underpayment included in their tax code
  • one-off or single year only liability brought into the Self Assessment system

they make payment using the payslip provided by their Processing Office.

On receipt of a voluntary payment DMB Banking will

  • bank the payment, and
  • create a VDP record.

The Processing Office are notified of the payment and reference on form P211(Z). Once they are satisfied that the amount of the payment matches the agreed liability, they will acknowledge receipt of the P211(Z).