PAYE Settlement Agreements

Deadlines and payment

The deadline for applying for a PAYE Settlement Agreement (PSA) is 5 July following the first tax year it applies to.

Example

For the tax year 2018 to 2019 you will have until 5 July 2019 to apply for your PSA.

When to pay

You must pay any tax and National Insurance owed under a PSA by 22 October after the tax year the PSA applies to (19 October if you pay by post).

You may be fined or charged interest if you do not pay or your payment is late.

What to pay when the PSA is first approved

If HM Revenue and Customs (HMRC) approves your PSA before the start of a tax year, you can include any expenses and benefits contained in the agreement.

If they approve it after the start of the tax year, you might need to report some items separately.

If your PSA is approved before 6 April

You must use form P11D to report expenses and benefits provided before the agreement date that you:

  • have already included in your employee’s tax code
  • included (or should have included) in your employee’s PAYE tax and National Insurance deductions

If your PSA is approved between 6 April and 5 July

You must use form P11D to report expenses and benefits provided during the tax year that you:

  • have already included in your employee’s tax code
  • included (or should have included) in your employee’s PAYE tax and National Insurance deductions