PAYE Settlement Agreement – Payment Reminder

25 September 2020

Employers who have a PAYE Settlement Agreement (PSA) in place may not have received a payslip from HMRC which confirms the amount owed under their PSA arrangement for the 2019-20 tax year, however, HMRC has advised that this should not be a reason for a delayed payment.

Employers are advised not to wait for the payslip to arrive before making payments and that they should make their payment based on the values that they calculated and submitted for their PSA to HMRC. Payments relating to a PSA for the tax year 2019-20 should clear in the HMRC bank account no later than 22 October, if made electronically. Postal payments should be sent no later than 19 October. Further information on PSA deadlines can be found here.

When processing the payment of a PSA, employers should ensure they quote their PSA reference number, as detailed on their PSA confirmation letter. They should not use their PAYE Accounts Office reference to make their PSA payment. The reason behind this is that payments received with the PAYE Accounts Office reference are allocated to an employer’s normal PAYE account and therefore employers will continue to receive reminders for the PSA payment, even though it has been paid.

If an employer does not have their PSA reference number, or are unsure about the action to take, they should contact the PSA team on 0300‌‌ 322 7077.

Employers may be fined or charged interest, or a late payment penalty, if they do not pay or their payment is late. If payments are delayed due to the current COVID-19 pandemic, HMRC will now consider this to be a reasonable excuse, however, employers will need to demonstrate how COVID-19 affected making payments on time. More details on what constitutes as a reasonable excuse can be found here.

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