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HMRC internal manual

PAYE Settlement Agreements

Dealing With PAYE Settlement Agreements


Provided that you and the employer agree you should be able to make new agreements fromyear to year based on the latest PSA. This should save you and the employer time.

Before 6 April

You must aim to review all the PSAs you currently have in place prior to the beginning ofthe following tax year.

In each case contact the employer to discuss making a new PSA for the following year. Askthe employer

  • whether a PSA is required
  • for details of the items to be covered, these may be the same or different.

When reviewing each case you must bear in mind that

  • items which would normally be appropriate for inclusion on forms P11D/P9D can be agreed any time up to 6 July following the end of the year concerned
  • items normally subject to PAYE can only be considered to be included in a PSA from the date the new PSA is formally agreed
  • items within a PSA that normally attract Class 1 NICs can only become liable to Class 1B NICs from the date the new PSA is agreed.

Where you are satisfied that a PSA is appropriate for the following year follow theguidance at PSA2020.