PAYE Settlement Agreements

How to get a PSA

  1. Write to HM Revenue and Customs (HMRC) Business Tax and Customs describing the expenses and benefits you want the PAYE Settlement Agreement (PSA) to cover.

  2. Once they’ve agreed on what can be included, they’ll send you 2 draft copies of form P626. Sign and return both copies. HMRC will authorise your request and send back a form - this is your PSA.

  3. You’ll need to report anything that cannot be included separately using form P11D. You do not need to send a P11D if you’re paying employees’ expenses and benefits through your payroll.

  4. Use form PSA1 to help you calculate the overall amount you’ll need to pay. If you do not, HMRC will calculate the amount. You’ll be charged more if this happens.

  5. Send the completed form to HMRC as soon as possible after the end of the tax year. They’ll get in touch with you before 19 October following the tax year that the PSA covers to confirm the total tax and National Insurance you need to pay.

You’ll need to give an agent a signed letter of authority to make a PSA on your behalf if they do not have authorisation to do so.

Business Tax and Customs - PSA Team
Benton Park View
Newcastle
NE98 1ZZ

Contact the HMRC employer helpline for advice on getting and calculating your PSA.

What happens next

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.

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