Sole Traders and Direct Debits

Lee,

It has gotten easier to collect from customers via direct debit in the past few years, but I haven’t heard of it being available to sole traders. Generally only larger business are accepted although someone may know of an intermediary service that sits between you as a small company and BACS to ensure you play by the rules (ie giving refunds to disputed amounts etc)

The basic process is you get approved by BACS (who run the direct debit system), generally I think this is done through your bank. You then get some software through which you run the payments every month. Set up fees etc will incurred and thinking about it I would be rather surprised if it is available for a micro sole trader. It’s really a corporate thing.

Worldpay have a recurring payments which might be a lot more suitable.

Suggest you get in contact with you bank and BACS to find out. Please let us know if you are successful because I am sure there are others on here who would be interested to hear if this is now available to the little guy.

Regards,

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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT

Oh you could ask you customers to set up standing orders if its not much of a problem

Try a company called SIS4it.co.uk i think they can help you although you will probably need at least 100 dd per month to make it worthwhile
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