Employers choosing to reimburse their staff for the cost of the EU Settled Status scheme

16 January 2019

From 30 March 2019 European Union (EU) citizens and their family will be able to apply to get either settled or pre-settled status.

Where an employer pays or reimburses their employees’ application, such payment will be taxable as employment income as the payment is of direct monetary value to the employee.

However, employers can also choose to meet the cost of this tax charge for their employees. For many employers this can be managed using their exiting arrangements with HMRC, using a PAYE Settlement Agreement (PSA) which allows employers to make one annual payment to cover all the tax and National Insurance due on minor, irregular or impracticable expenses or benefits for their staff.

For further information on PSA's go to GOV.UK.

This information was highlighted in the December 2018 issue of HMRC’s Employer Bulletin.


21 January 2019 – BBC announcement

Theresa May has scrapped the £65 fee millions of EU citizens were going to have to pay to secure the right to continue living in the UK after Brexit.