Monthly direct debit

PAYE Modernisation – introduction of variable direct debit scheme

Under PAYE Modernisation, from 25 January 2019 you will be able to avail of a new variable direct debit scheme.

Under the variable scheme, Revenue will obtain permission to request the value of your actual monthly liability.

You can apply to set up a variable direct debit for Employers’ Income Tax through Revenue Online Service (ROS).

If you are currently on a fixed direct debit, you need to cancel this before setting up a new variable direct debit. This will ensure that Revenue only requests one payment from your bank.

Once you have set up a variable direct debit, you are not obligated to make a separate payment via an alternative payment method, for example a ROS Debit Instruction. The variable direct debit amount to be deducted will be equal to the actual amount of your outstanding monthly liability.

Missed or unpaid employers’ Income Tax variable direct debit payments

Your bank may return your payment as ‘unpaid’. If it does, Revenue will request the missed or unpaid variable direct debit payment again. We will request the payment seven working days after the date the original payment was due.

Your original payment is due on the third last working day of the month.

Revenue may charge interest on payments which are not collected until the second debit date or replacement payments made by debit or credit card.

We may remove you from the direct debit scheme when direct debits are unpaid.

Group remitters

If you are a group remitter and want to remain on direct debit, you will have to change to a variable direct debit. Group Remitters will have to cancel their current fixed direct debit arrangement for Employers’ Income Tax. Your VAT fixed direct debit will not be affected. You can set up a variable direct debit from 25 January 2019.

See the Terms and Conditions for more information.

Next: Value-Added Tax (VAT)