HMRC are contacting employers with a PAYE Settlement Agreement (PSA) who have not yet submitted PSA calculations for 2022-23.
PAYE Settlement Agreements (PSAs) are statutory agreements with HMRC which allow employers to settle, in a single payment, the Income Tax and National Insurance (NI) liabilities on minor, irregular, or impracticable taxable expenses or Benefits In Kind provided to employees.
HMRC is now emailing employers with whom a PSA is in place, but no calculations have been provided for the 2022-23 tax year.
- PSA calculations must usually be provided to HMRC by 31 July following the end of the tax year that they relate to.
The email notes that:
- A calculation must be submitted where a PSA is in place, even if it is a nil return.
- The employer may have already made a payment on account, but in the absence of calculations, HMRC cannot verify that the payment is correct.
Recipients of HMRC's email are advised to submit any outstanding PSA calculations, either via the online digital service or by post.
HMRC warn that a determination may be issued where calculations are not received.
Useful guides on this topic
PAYE Settlement Agreements
What are PAYE Settlement Agreements? How do they work? What can be included?
Exemption for paid and reimbursed expenses
What exemptions apply for paid and reimbursed employee expenses? What are the rules?
Payrolling of benefits
The value of certain taxable Benefits In Kind can be included in taxable pay when calculating the PAYE deducted from payments of wages and salaries to employees.
Trivial benefits
What are trivial benefits? What is included? What are the caps?
External link
ICAEW: HMRC letter, Submitting PAYE Settlement Agreement (PSA) Calculations
