Impact assessment

Easy consistent payment methods direct debit Variable Payment Plan for Employers’ PAYE

Published 27 September 2022

Project objectives

This project will offer direct debit Variable Payment Plan (VPP) to the Employers’ PAYE customer base, using the Strategic Direct Debit Service Service from 3 October 2022. Employers currently don’t have the option to pay by VPP.

Employers are not being mandated to use direct debit VPP, they may choose to do so by logging into their Business Tax Account, Personal Tax Account, ePAYE or Government Gateway account and selecting the option to set up a regular direct debit. HMRC is simply offering another payment method to Employers’ PAYE customers. Customers who require additional help on how to pay HMRC can phone the Employers’ Helpline in accordance with current GOV.UK guidance

Direct debit is cheap, accurate and once set up, low maintenance for both HMRC and the employer. This work is about increasing direct debit take up. Direct debit collection is triggered by the submission of a return based debit charge.

The Strategic Direct Debit Service passed an accessibility audit completed by Digital Inclusion and Accessibility Standards in November 2021.

Customer groups affected

Employers and sub-contractors who submit return based debit charges.

What customers will need to do

What customers need to do as a result of the change

Employers may choose to set up a direct debit by logging into their Business Tax Account, Personal Tax Account, ePAYE or Government Gateway account and selecting the option to set up a regular direct debit and verify their email address.

How customers will access this service

Employers must log into their Business Tax Account, Personal Tax Account or Government Gateway account and select the option to set up a regular direct debit.

When customers need to do this

Employers can sign up for direct debit VPP at any time. They will also be able to log into their Business Tax Account, Personal Tax Account or Government Gateway account when they want to view, amend, or cancel the direct debit.

Assessing the impact

We assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty and section 75 of the Northern Ireland Act:

• racial groups,
• sex
• gender reassignment
• sexual orientation
• pregnancy and maternity
• marriage and civil partnership
• people with dependents and those without
• political opinion (for Northern Ireland only)

There is no evidence to suggest any specific impacts on those customers within any of the protected characteristic groups (listed above).

Disabled, age, religion or belief

Impact on customers

There is no evidence to suggest specific impacts on those customers within these protected characteristic groups.

However, there may be some digitally excluded employers within this group who may be unable set up a direct debit VPP as they do not hold an email address.

Proposed mitigation

Employers are not being mandated to use direct debit VPP. Therefore, digitally-excluded employers can continue to pay by their usual strategic payment method eg Faster Payment, Pay by bank account, BACS, CHAPS, Online debit card, Bank Giro, Cheque, online corporate credit card, telephone debit card, telephone corporate credit card.

People who use different languages (Including Welsh Language and British Sign Language)

Impact on customers

The Welsh Language Unit have advised that there are employers who would like correspondence in Welsh.

Proposed mitigation

The project has engaged with the Welsh Language Unit and are working with IT delivery groups to include Welsh Language in the customer journey and digital outputs.

Opportunities to promote equalities

We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group.

We are taking the opportunity to provide the direct debit customer journey and digital outputs to employers in Welsh Language, should they choose this option.

A full equality impact assessment is not recommended.