PAYE: PAYE Settlement Agreement (PSA1)

06 September 2018

PAYE: PAYE Settlement Agreement (PSA1)

Use form PSA1 to tell HMRC the value of items included in your PAYE Settlement Agreement. A PAYE Settlement Agreement (PSA) allows you to make one annual payment to cover all the tax and National Insurance due on minor, irregular or impracticable expenses or benefits for your employees. If you have a PSA you won’t need to put these items through your payroll or include them in your end of year P11D.

A new version of the form PSA1 has been developed and should be used for tax year 2018 – 2019 and onwards. Use form PSA1 to help you calculate the overall amount you’ll need to pay. If you don’t, HMRC will calculate the amount and you could be charged more.