PAYE Settlement Agreements

Deadlines and payment

If HM Revenue and Customs (HMRC) approves your PAYE Settlement Agreement (PSA) before the start of the 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.

After 5 July 2018 you can’t apply for a PSA for the 2017 to 2018 tax year.

If your PSA is approved before 6 April 2018

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
  • have included in your employee’s PAYE tax and National Insurance deductions
  • should have included in your employee’s PAYE tax and National Insurance deductions

If your PSA is approved between 6 April 2018 and 5 July 2018

You must use form P11D to report expenses and benefits provided during the 2017 to 2018 tax year that you:

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

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 don’t pay or your payment is late.