taxagents.blog.gov.uk/2019/10/02/important-information-about-payments-due-under-paye-settlement-agreements/ contact the employer`s HMRC helpline for advice on consulting and calculating your PSA. If you have any doubts, we advise you to contact the employer helpline HMRC on 0300 200 3200 to confirm your PSA payment reference as soon as possible and to ensure that you have your PAYE reference number at your fingertips. taxagents.blog.gov.uk/2019/06/25/paye-settlement-agreement-deadline-6-july-2019/ September 25, 2020: Employers who have entered into a PAYE (PSA) settlement contract should not wait for a HMRC pay slip before paying to avoid interest and late payment penalties, warns the ICAEW`s tax office. PAYE Billing Agreements (PAYA) are voluntary agreements that allow employers to pay taxes and social security contributions (NIC) on behalf of their employees. They are also useful when reporting benefits on P11D forms would be administratively binding. From 2018-19, HMRC has moved on to a new simplified PSA enduring process. The new procedure replaces the previous procedure by which employers had to apply for an PPE each year and to ensure that the signed agreements were in effect on a specified date. Under the new procedure, it is not necessary for an employer to do anything else after signing a permanent PSA agreement, unless the PSA agreement is to be amended or if hmrc or the customer decides that a PSA is no longer required. You must continue to use a payment reference, even if HMRC has not sent you a confirmation letter. Fortunately, there is a payment reference in the HMRC letter that is attached to your counter-signed P626, the letter by which the agreement came into effect. Although it is not tax, it is unique to each employer and HMRC has therefore confirmed to us that it can be used in this situation. This is in format XX0000123456789.
The contract will continue until you or HMRC have to terminate or amend it. You don`t need to renew the PSA every tax year. A Pay Settlement Agreement (EPI) allows you to make an annual payment to cover the full amount of tax and national insurance due for minor, irregular or unfeasible expenses or benefits for your employees. In recent years, HMRC has consistently returned by authorizing the PPE calculations that were passed on to them by employers. For 2018/19, the situation has reached a new low point. Less than two weeks before the payment period expired, HMRC informed us that they had not even begun processing the PPE calculations. If you would like to speak to the PSA team, our phone number 0300 322 7077 HMRC has informed us that employers should not wait for confirmation of their EPI calculations. Instead, you must pay the tax and NIC debts you have calculated using the usual payment methods listed on the HMRC website until the payment deadline listed above. When paying a PSA payment, employers should ensure that they provide their EPI reference number, as indicated in their EPI confirmation letter. You should not use your PAYE account to make your PSA payment. This is because payments received with the accounts office pay reference are assigned to an employer`s normal PAYE account and, therefore, employers continue to receive warnings for PSA payment, even though it has been paid.
This means that employers do not have a letter from HMRC confirming the amount to be paid, the payment and, what is essential, the payment reference. This reference is specific to each employer and each tax year. As a result, PPE has been popular with employers, although it can be costly; If you pay tax and NICs on behalf of your employees, this is subject to tax and NIC.