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HMRC internal manual

PAYE Settlement Agreements

Irregularities: Tax and NICs included in a calculation for items not covered by the PSA

Where you discover that a calculation erroneously included tax and/or NICs on itemswhich were not covered by the terms of the agreement you must contact the employer to

  • obtain the full facts
  • establish why the amounts were included in the settlement and
  • explain that future calculations must be complete and correct

Depending on the details you obtain from the employer follow the guidance shown below

  • where there is a dispute over the items in a PSA see PSA5040
  • where eligible items have been included in the settlement but were not in the original agreement see PSA5050
  • where ineligible items have been included in the settlement see PSA5060