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A Direct Debit payment (DD) is an instruction that you give to your bank. It lets them know that you’re authorising a company to collect money from your account. The payment is deducted automatically.
Unlike standing orders, they’re only used by businesses to set up regular payments. You wouldn’t, for instance, use a Direct Debit to pay your friend your share of rental bills every month. You would, instead, use it to pay the utility companies directly.
If a company wishes to change the amount or date of payment collection, they have to tell you about it in advance. And if you want to stop paying a Direct Debit, you’ll have to cancel it both with your bank and with the business with whom you’ve set up the bill.
Yes, you can. Here’s how:
If you’re ready to set up a Direct Debit to pay your tax bill, just head over to HMRC online and do it directly from there.