Online PSA service now available
A PAYE settlement agreement (PSA) is a handy way for employers to settle tax on minor or infrequent benefits provided to employees. A PSA needs to be agreed with HMRC and this can now be done online. What do you need to know?
A PSA can be used by an employer to settle employees’ tax liabilities where they have been provided with benefits that are “minor” or “infrequent”. It can also be used to pay tax where it would be “impracticable” to allocate specific amounts of value to individuals. If you apply for your PSA prior to the tax year, it can cover anything that's included in the agreement. It's possible to apply after the start of a tax year, but some items may not be able to be included, and will need to go on the P11D form instead.
A new online service is now available to apply for, amend or cancel a PSA. This can be used by employers or an authorised agent, e.g. an accountant. To access the service, you'll need your employer PAYE reference. This is a three-digit number, a forward slash and then a mix of letters and numbers, like 123/AB456. You can find this on letters from HMRC about PAYE.
You also need contact details, including:
- the name of your business
- an address
- your telephone number
- your email address (unless you sign in with a Government Gateway user ID).
Related Topics
-
Increase the IHT-free part of your estate by 50%
Your father died leaving his entire estate to your mother who later remarried. You’ll inherit some or all of her estate depending on whether she dies before her husband. What steps can be taken to reduce the inheritance tax (IHT) on the estate?
-
Class 2 NI problems to continue beyond summer
The problems with incorrectly charged Class 2 NI have been widely reported. HMRC has just released an update, and it’s bad news for affected individuals. What’s the full story?
-
How much will you save with reduced scale charges?
HMRC has reduced the VAT fuel scale charge by nearly 6% for company-provided cars. When does the new reduced rate take effect and how do you make the calculations?