We have noticed that some tax agents are setting up direct debits for their clients without the right authorisation (a direct debit mandate).
A direct debit mandate is the authority a client gives to us to debit their bank account.
You can only set up direct debits for clients if you hold sole signing authority on the client's bank account. This authority must be held by or registered with the bank.
Only the person in your tax agency who is named in the authority can set up the direct debit. This cannot be delegated to other staff.
If you do not hold a direct debit mandate
When you are setting up an instalment arrangement for a client you do not hold a direct debate mandate for, select ‘Other’ as a payment method.
Check nominated bank accounts
We recommend that you check bank accounts nominated for your agency to make sure they are correct. Delete any invalid bank accounts, or client bank accounts that may have been added in error. If you are an owner, you can check in myIR under your own agency account by selecting ‘I want to... Manage refund bank accounts’. You will see a list of bank accounts associated with your agency.
Individual staff in your agency should check to see if any direct debits have been set up under their logon. To do this, select ‘Manage my profile, I want to…., Manage payment channels’. Direct debits will show as blue links at the top of the page. If the direct debits are incorrect, cancel them by clicking on the link and select ‘Remove this direct debit authority with Inland Revenue’.