PAYE Settlement Agreements
How to get a PSA
You can apply to get a PAYE Settlement Agreement (PSA) online. If you’re unable to apply online, you can apply by post.
You can get an agent to apply for a PSA on your behalf. You’ll need to give them a signed letter of authority if they do not have authorisation to apply already.
Contact the HM Revenue and Customs (HMRC) employer helpline if you want advice on getting and calculating your PSA.
Apply 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
- your telephone number
- your email address (unless you sign in with a Government Gateway user ID)
HMRC will check what’s included in your PSA. They’ll contact you if there are any issues
If your request is authorised, you’ll get a confirmation email or letter. You’ll then be sent your PSA by post.
Apply by post
Write to HMRC Business Tax and Customs describing the expenses and benefits you want the PSA to cover.
PAYE Settlement Agreements
HM Revenue and Customs
BX9 2AN
Once HMRC have agreed on what can be included, they’ll send you a draft copy of form P626. Sign and return this form. HMRC will authorise your request and send you a:
- PSA02 letter - this is your PSA
- countersigned copy of the P626
What happens next
Once you have a PSA, you’ll need to tell HMRC what you owe every tax year.
The agreement will continue until either you or HMRC cancels it or you need to change it. You do not need to renew the PSA each tax year.