Overview of PAYE Settlement Agreements
The general rules for successions shown in Regulation 102 of the Income Tax (Pay As YouEarn) Regulations 2003 do not apply to PSAs.
When you become aware that a succession has taken place you must
- ascertain what expenses or benefits have been provided by the old employer up to the date of succession
- agree the amount of tax and Class 1B NICs payable
create a charge for the old employer by
- notify the successor employer that normal procedures apply from the date of the succession unless a new PSA is agreed
- enter into a new PSA if appropriate.
Where the new employer undertakes to settle the old employers PSA liability and wishesto continue the PSA
- consider raising one charge for the year of succession in the name of the new employer
- ensure that a new form P626 is drawn up and signed.