ARTICLE · 10 JANUARY 2013

PAYE Settlement Agreements

Smith & Williamson

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A PAYE settlement agreement (PSA) with HM Revenue & Customs (HMRC) could help your business reduce the time taken for administration and generate goodwill among staff.

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Smith & Williamson

Do you provide your employees with expenses, benefits in kind or non-cash incentive awards?

A PAYE settlement agreement (PSA) with HM Revenue & Customs (HMRC) could help your business reduce the time taken for administration and generate goodwill among staff.

A PSA is a voluntary agreement between an employer and an inspector of taxes. Broadly, the employer agrees to meet its employees' tax liabilities relating to certain benefits and expense payments.

The main advantage to this agreement is that once an item is covered by a PSA it does not need to be included on form P11D (or P9D) at the year end. Similarly, your employees do not need to include these items on their personal tax returns.

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