Regulation 25 Provision for a bank’s administrative costs under a direct deduction order
A direct deduction order which includes provision for a bank to deduct its reasonably incurred costs of complying with a direct deduction order (“bank’s administrative costs”) under paragraph 8(1) of Schedule 3ZA (bank’s administrative costs) must not require the bank to deduct its administrative costs.
In the case of a lump sum direct deduction order, the bank may not deduct from the liable person’s account an amount in respect of the bank’s administrative costs which exceeds the lesser of—
£55, or
the amount the bank has actually incurred, or reasonably estimates it has incurred or will incur, in respect of complying with the direct deduction order (including any action the bank was required to take prior to being given the direct deduction order).
In the case of a regular direct deduction order, the bank may not deduct from the liable person’s account an amount in respect of the bank’s administrative costs which exceeds the lesser of—
£10 for every deduction required by the direct deduction order,
£40 in any 1 month, or
the amount the bank has actually incurred, or reasonably estimates it has incurred or will incur, in respect of complying with the direct deduction order (including any action the bank was required to take prior to being given the direct deduction order).
A bank may not deduct its administrative costs if doing so would cause there to be insufficient funds to deduct the amount payable to the Secretary of State under the direct deduction order on that day.