PAYE Settlement Agreements (PSA)

A PSA is, for those of you who are not aware, an agreement entered into each year with HMRC under which the employer agrees to settle income tax payable on behalf of its employees on a grossed up basis in respect of certain benefits

PSAs can cover a multitude of benefits, such as staff entertaining, gift vouchers and other benefits and expenses where it is not practical for the employer to payroll the cost or report details on forms P11D

We assist a number of clients with:

  • putting into place PSAs (ie preparing and agreeing the contracts),
  • preparing calculations of the grossed up income tax and associated NIC payable under the PSA, and
  • agreeing the amounts payable with HMRC.