Employers with a PAYE Settlement Agreement (PSA) in place should ensure their payment in respect of 2019/20 is made to HMRC by 22 October 2020 to avoid interest and late payment penalties.

If payment is being made by post, this should reach HMRC by 19 October 2020.

Electronic payments must clear HMRC’s bank account by 22 October 2020.

The Institute of Chartered Accountants in England and Wales’ (ICAEW’s) Tax faculty has warned that employers who are yet to receive a payslip from HMRC confirming the amount owed under their PSA for 2019/20 should make payment based on the calculations they submitted to HMRC to ensure payment is made on time.


PAYE Settlement Agreements
What are PAYE Settlement Agreements? How do they work?

Penalties: Late Payment
If tax is paid late, HMRC can charge a penalty for failure to make payments on time.

HMRC guidance: Pay a PAYE Settlement Agreement