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
-
CT61
-
Government finally confirms date for capital goods scheme reforms
The government has finally confirmed when long-awaited changes to the capital goods scheme (CGS) will take effect. The reforms, first announced as part of a wider review of VAT simplification, will come into force on 29 July 2026. What does this mean for businesses?
-
The tax‑free perks league table
You know that there are certain items or services your company can pay for without incurring a tax charge, but you’re hazy on the details. What are the most valuable tax-free perks for owner managers and which ones are you missing out on?