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HMRC internal manual

PAYE Settlement Agreements

Irregularities: Eligible items included in a settlement not covered by the PSA

Where you identify that items have been included in a settlement which are not covered by the PSA but which would otherwise be eligible and that a compliance review is not appropriate

  • treat the items outside the terms of the PSA as a voluntary disclosure by the employer (this will not affect our rights to carry out a review at a later date)
  • obtain all the information from the employer to enable tax and NICs payable to be calculated
  • settle the duties underpaid including penalties and interest, under Class 6 by employer amendment
  • advise the employer to apply for the inclusion of the item(s) in a future PSA.