PAYE Settlement Agreements

What's included

The expenses or benefits you include in a PAYE Settlement Agreement (PSA) must be minor, irregular or impracticable.


Examples of minor benefits and expenses include:

  • incentive awards, for example for long-service
  • telephone bills
  • small gifts and vouchers
  • staff entertainment, for example a ticket to an event
  • non-business expenses while travelling overnight on business that are over the daily limit

You do not need to include trivial benefits in your PSA.


Irregular benefits and expenses are things that are not paid at regular intervals over the course of a tax year, for example weekly or monthly. They’re also things that employees do not have a contractual right to. Examples of irregular expenses and benefits include:

  • relocation expenses over £8,000 (these are tax-free below £8,000)
  • the cost of attending overseas conferences
  • expenses of a spouse accompanying an employee abroad
  • use of a company holiday flat


Impracticable expenses and benefits are things that are difficult to place a value on or divide up between individual employees. Examples of impracticable expenses and benefits include:

What’s not included

You cannot include wages, high-value benefits like company cars, or cash payments such as:

If you apply after the start of the tax year, there are extra restrictions on what you can include.