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Simplifying PAYE Settlement Agreements

31/07/2018
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The process for administering and agreeing PAYE Settlement Agreements (PSA) has changed to reduce the burden for employers.

From 6 April 2018, a PSA will be agreed between the employer and HMRC and will remain in place for subsequent tax years unless varied or cancelled by the employer or HMRC.

This means that employers will no longer have to renew their PSAs annually, so long as this enduring agreement remains accurate.

HMRC have been issuing P626s, which will form the basis of the first enduring agreement. The P626s will invite employers to agree their enduring PSA on the basis of the criteria that was in place for the tax year 2017 to 2018.

Contact us

Caroline Harwood
Caroline Harwood
Partner, Head of Share Plans and Employment Tax
London