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
-
HMRC checks directors’ loans are paid up
HMRC is writing to agents to check corporation tax returns for previous years are correct as it used to be possible to add a future date for an anticipated loan repayment. What’s the issue and what should you do if your advisor receives a letter?
-
Working from home tax relief scrapped in Budget
Employees who are required to work from home are currently able to claim tax relief at a flat rate of £6 per week. That's changing from 6 April 2026. What's the full story?
-
Government quietly confirms change to key tax deduction
The headlines for individuals at last week's Budget were all about the income tax hikes. But the small print contained confirmation of another important change. What’s the full story?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.