PAYE Settlement Agreements

2. What's included

The expenses or benefits you include in a PAYE Settlement Agreement (PSA) must be one of the following:

  • minor, for example a small birthday present
  • irregular, for example one-off relocation expenses over £8,000 (these are tax-free below £8,000)
  • impracticable (difficult to work out the value of or divide up between individual employees), for example shared cars or taxi journeys

You can’t include high-value benefits like company cars, or cash payments such as bonuses, round sum allowances or beneficial loans in a PSA.

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