HMRC have published Draft Legislation: The Income Tax (Pay As You Earn) (Amendment No ***) Regulations 2017, which updates the PAYE Settlement Agreement (PSA) process and make it easier and simpler to administer.

Two specific measures are proposed

  • Lift the current requirement for employers to renew the PSA annually by providing an “enduring agreement”
  • Ensure the regulations allow for digitisation of the PSA process (at a later stage)
  • The Government is not proposing to amend the BiKs or expenses that can be covered.

In addition, the draft regulations set out

  • The form of the revised PSA
  • How records should be kept and tax calculated and paid

Three questions are asked:

  1. Do you think adopting an “enduring agreement” will create any issues for employers?
  2. Do the regulations as drafted achieve their objectives?
  3. Do these draft regulations produce any unintended consequences?

HMRC are inviting comments by 21 February 2018 with the intention that the rules will apply from 6 April 2018.


PAYE Settlement Agreements

Consultation: Draft Legislation: The Income Tax (Pay As You Earn) (Amendment No ***) Regulations 2017