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HMRC internal manual

Tax Credits Manual

How to set up a payment plan on the National Direct Debit System (NDDS)

Version 1.0

Changes to previous version - new guidance

Step 1

  • select ‘Time To Pay’ from the options available in the ‘Plan Type’ field
  • select ‘Telephone’ from the options available in the ‘Creation Channel’ field
  • select ‘Continue’. You will be taken to the ‘Create Time To Pay’ screen
  • select NTC from the options available in the ‘Head of Duty’ (HoD) field

Note: The HoD details may have been carried forward from your search results

  • enter the HoD reference in the ‘HoD Reference’ field

Note: The reference is made up of the customer’s NINO excluding the suffix, the entitlement end date, head of duty ref (which is always N for NTC) and the ‘Check Character’ which you will have obtained from ‘Print Payslip’

For example


  • enter the total amount that the customer has agreed to pay against this HoD reference in the ‘Amount Due’ field

Note: For multiple overpayments from within the same household you must enter each year separately starting with the earliest year

Note: If the customer has overpayments from a previous household you must create a new Payment Plan for these. Under no circumstances can overpayments from different households be included within the same entry on NDDS

  • if applicable enter the date of the initial payment in the ‘Initial Collection Date’ field

Note: This must be at least 14 days after the date you set up the arrangement

  • if applicable enter the amount of the initial payment in the ‘Initial Collection Amount’ field

Note: The Initial Collection Date / Amount fields are there specifically to allow you to negotiate a larger initial payment. However a smaller amount can be entered if that is what you have agreed with the customer. You can also use this field to adjust the amount of the final payment

  • enter the date of the first instalment to be collected after the initial payment in the ‘Regular Collection Date’ field
  • select the frequency of payments from the options available in the ‘Frequency’ field
  • enter either

    • the amount to be regularly collected in the ‘Regular Collection Date’ field, or
    • the date the final payment will be collected in the ‘End Date’ field, or
    • the number of payments to be made in ‘The Number of Collections’ field
  • select ‘Calculate Summary’. A summary of the payment plan will be displayed below
  • From the ‘Summary’ screen confirm with the customer,

    • when the first payment will be taken
    • the amount of the first payment
    • the monthly payments
    • when and how much the final payment will be

If the customer agrees with the payment plan

  • select ‘Save’
  • select ‘Finish’

If the customer wants to amend, or does not agree with, the payment plan

  • select ‘Change Payment Plan’
  • return to the beginning of this step to re-enter the details