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PAYE settlement agreement payment reminder

A PAYE Settlement Agreement (PSA) allows employers to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for your employees.

The expenses or benefits included in a PSA must be defined as one of the following;

  • minor – e.g. a small birthday present
  • irregular – e.g. one-off relocation expenses over £8,000 (these are tax-free below £8,000)
  • impracticable (difficult to work out the value of or divide up between individual employees) – e.g. shared cars or taxi journeys

Employers that are required to notify HMRC of the value of items included in a PAYE settlement agreement (PSA) should do so using form PSA1. The deadline for applying for a PSA for 2019-20 expired on 5 July 2020.

However, any tax or National Insurance due for 2019-20 under a PSA must be paid electronically to clear into HMRC’s bank account by 22 October 2020. Employers that pay by cheque must ensure that the payment reaches HMRC by 19 October 2020. There may be interest and / or a late payment penalty due where the payment is made late.

Source: HM Revenue & Customs Wed, 30 Sep 2020 00:00:00 +0100

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Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.

Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest:

HMRC
FT
BBC
VEALE WASBROUGH VIZARDS
CESP
PRACTICE INDEX
SIMCOMM ACADEMY

More Local:
FOOTPLATE EXPERIENCE
ANGLEBURY PRESS
OFFCAMBER.CO.UK