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HMRC internal manual

PAYE Settlement Agreements

Overview of PAYE Settlement Agreements: Late Payment and Interest on PSA Charges

PSA1150 explains that payments of tax and NICs can be made at any time after the agreement is signed. The final due date for payments is 19 October (or 22 October where paid by an approved electronic payment method) following the year to which the PSA applies.

Late Payment

PSA charges are raised on the basis that payments are voluntary and most employers will have time to agree the amounts due on a PSA and to pay it by 19 October (or 22 October).

Where an employer fails to make the payment on time the Network Unit or Recovery office may

  • charge interest on amounts paid late, see below
  • advise you that payments are outstanding. See PSA2110 


Where payments arising from PSAs are made after that date Regulation 115 provides for a statutory interest charge starting from the final due date.

Interest will arise automatically after that date irrespective of whether or not the total amount due

  • has been agreed, or
  • determined under Regulation 110.

Any interest payable will be notified to the employer by the Miscellaneous Charges Unit or their responsible Recovery Office.