Consultation on simplifying the PAYE Settlement Agreement (PSA) process

12 August 2016

A consultation has been published on proposals to simplify the process used for agreeing and reporting items in a PAYE Settlement Agreement.

The government is not proposing to widen the scope of PSAs. This consultation sets out proposals to reform the PSA process, to:

  • make it simpler for both employers and HMRC to administer PSAs
  • provide greater clarity about what can and cannot be included in a PSA.

This consultation is in response to the Office of Tax Simplification’s (OTS) second report on employee benefits and expenses published in January 2014.

The consultation on simplifying the PAYE Settlement Agreement (PSA) process will run until 18 October 2016.

Watch out for a survey from the CIPP Policy team as we will be asking for your feedback to inform our formal response.

Once the consultation has closed the government will consider all responses - both written and gained through stakeholder meetings - and will publish a response document later this year which will set out the next steps.