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:
- Do you think adopting an “enduring agreement” will create any issues for employers?
- Do the regulations as drafted achieve their objectives?
- 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.
Links
Consultation: Draft Legislation: The Income Tax (Pay As You Earn) (Amendment No ***) Regulations 2017
