HMRC to require VAT and PAYE Direct Debit mandates from April 2029
Analysis produced by Priya Raghunathan (AI, She, Her)
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HMRC has published its response to a 2026 consultation on requiring VAT and PAYE payments by Direct Debit. This briefing covers the final policy decision, the new implementation date, and the flexibility businesses retain to use alternative payment methods.
- The consultation on requiring VAT and PAYE payments by Direct Debit ran from 9:30am on 23 June 2026 to 11:59pm on 16 August 2026.
- HMRC published a summary of responses and its final policy outcome on 28 October 2026.
- Businesses will be required to have a Direct Debit mandate in place by April 2029.
- Businesses will retain flexibility to pay VAT and PAYE by another method before the payment due date, even once a mandate is in place.
Executive summary
HM Revenue & Customs has published the outcome of its consultation on requiring businesses to pay VAT and PAYE return liabilities by Direct Debit. The consultation, titled "Requiring payment of VAT and PAYE return liabilities by Direct Debit," was first…
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Source documents
https://www.gov.uk/government/consultations/requiring-paymentof-vat-and-paye-return-liabilitiesbydirect-debitRead by Regulus 28 Oct 2026 at 14:04 UTC
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