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HMRC internal manual

PAYE Settlement Agreements

Irregularities: Calculation errors

Where you discover that there has been an error in the calculation of tax and NICs due on items included in a PSA you must

  • consider whether the tax and NICs paid in earlier years is also likely to have been incorrect
  • recalculate the liability for the year(s) in question, using estimates as appropriate

Where the error is minor, advise the employer to ensure that tax and NICs in future or enduring agreements is calculated correctly. See PSA2060

Where the error is substantial, resulting in an underpayment, consider Reg 110 determinations to recover the shortfall. See PSA4000