[dɪˈrɛkt ˈdɛbɪt ˈpeɪmənt]
Direct Debit Payment allows for money to be automatically withdrawn from the sender's account, which creates an easy and reliable payment arrangement.
A Direct Debit Payment is an arrangement where a third-party service provider is given authorisation to automatically take money directly from an individual's or business' bank account. They are only used to pay for services from businesses that require regular payment (like car insurance for example). They are reliable and reduce the risk of late payments, thus reducing administrative costs for businesses. This is why paying with Direct Debit can often be cheaper.
Businesses must inform the individual about any changes to the Direct Debit. To cancel a Direct Debit, the individual has to contact the bank and the company receiving the Direct Debit.
When it comes to tax for example you can set up a Direct Debit with HMRC to settle any single payment tax obligations.
There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.
Read more
Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.
Read more
