Direct Debit question please?

Mikeyorks

Mark_In_Hampshire wrote: »

On a conspiracy theory note, one option being looked at now is the possibility of wages being paid by the Inland Revenue (employer credit them, they credit you). That then opens up the possibility of "direct debit at source of funds" otherwise known as "attachment to earnings" which you would then have to accept in order to get e.g. utilities, and it would make it very difficult to be self-employed.
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That's more fantasy than conspiracy? The discussion document envisages HMRC providing a central calculator to determine PAYE / NIC / SLC deductions .... and thereby save employers payroll costs. In particular resolving problems for starters / leavers etc ..... as employers will no longer need Code numbers / P45s etc.

But the calculation will take place by the employer sending the payment file to the calculator instead of to BACS. And HMRC will then send the (amended) file onto BACS who - as now - will send the payments out to employees accounts and the appropriate debits to the employer account. The sole difference being that the file will now contain a consolidated payment to be made back to HMRC to credit them for the total PAYE / NIC / SLC deductions. The employer will continue to make the net payment - as currently. But HMRC will be responsible for the accuracy of the tax etc deductions .... as opposed to the shared responsibility with the employer that uncomfortably exists now.

It's an intercept principle that's been talked about for years but the technology wasn't there to achieve it. How that can be extrapolated to direct debits ..... I'll leave with your imagination.