Simplifying PAYE Settlement Agreements and impact for software developers

20 July 2017


PAYE Settlement Agreements (PSA’s) are easements which allow employers to make one single payment, on behalf of their employees, to cover all the tax and National Insurance contributions due on certain small or irregular taxable expenses or benefits providing they meet the relevant criteria.

Currently both employers and third party agents can submit PSAs to HMRC via a print and post I-Form. However, from 6 April 2018 HMRC will:

  • Provide an online digital service for PSA submissions and payment

  • Remove the need for an annual upfront PSA agreement

  • Improve and clarify PSA guidance


The new PSA digital process will be developed in response to the PSA consultation exercise that took place in 2016.


3rd Party Software Supplier involvement

To support the introduction of the digital PSA service, HMRC would like to understand the opportunities and gauge interest for updating software products enabling access to the digital PSA service for agents and employers.

As a 3rd Party Software provider, would you be interested in a public API to access HMRC’s digital PSA service? Tell us ‘Yes’ or ‘No’ with a brief explanation why – please do not include any personal or sensitive information.

Please respond to HMRC using [email protected] within seven days from the date of this news item. Thank you.