PAYE Settlement Agreement Deadline – 6 July 2019

4th July 2019

A PAYE Settlement agreement allows employers to make one annual payment to cover the tax and National Insurance liability on minor, irregular or impracticable expenses for any employees. HMRC have now changed the process for PSAs and, instead of applying for a new PSA annually, from 2018-19 employers will have an enduring agreement and therefore will only need to update HMRC when the PSA requires amendment or cancellation.

 

If you have a PSA, you will not need to:

  • Put the benefits that are covered through your payroll to work out tax and National Insurance
  • Include these benefits on a P11D form

However, grossing up calculations are required, therefore a PSA may be a more expensive option.

 

For more information on PSA’s, and some examples of benefits that may be covered, please visit the following link, or speak to your usual Whiting and Partners contact:

https://www.gov.uk/paye-settlement-agreements/whats-included

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