PAYE Settlement Agreements
Change or cancel a PSA
You can apply to change or cancel your PAYE Settlement Agreement (PSA) online. If you’re unable to apply online, you can apply by post.
Apply to change or cancel online
You need your employer PAYE reference. This is a 3 digit number, a forward slash and then a mix of letters and numbers, like 123/AB456. You can find this on letters you’ve got from HMRC about PAYE.
You also need contact details, including:
- the name of your business
- an address, if you’re applying to change your PSA
- your telephone number
- your email address (unless you sign in with a Government Gateway user ID)
Once the changes or cancellation have been made, you’ll get confirmation in an email or a letter.
If you’ve applied to cancel your PSA, HMRC will cancel it from the date you ask for on the form.
Apply to change or cancel by post
If you want to change your PSA, send details of the changes to the office that issued your PSA. HM Revenue and Customs (HMRC) will send you a revised P626 that you need to sign and return.
If you want to cancel your PSA, ask the office that issued your PSA to send you a P626. Fill in the return slip section of the P626 and send it to HMRC.
PAYE Settlement Agreements
HM Revenue and Customs
BX9 2AN
If you’ve applied to cancel your PSA, HMRC will cancel it on the date you put on the return slip.
If you cancel your PSA
You need to report any outstanding tax and National Insurance Contributions (NICs) due on benefits and expenses using form P11D and form PSA1.
You need to pay any outstanding tax and NICs by 22 October after the tax year the PSA applies to (19 October if you pay by post).
You need to pay any NICs owed on expenses or benefits listed on the P11D form by 22 July after the tax year it applies to (19 July if you pay by post).
If you continue providing benefits after you’ve cancelled your PSA, you need to either:
- report them on form P11D
- put them through payroll
You can pay any tax or NICs due via PAYE.