Imagine being able to bundle up all those pesky, minor, and irregular employee benefits into one neat package, make a single payment, and call it a day. Sounds like a dream, right? Well, that’s essentially what a PSA allows you to do. Instead of dealing with the headache of individual tax calculations for things like staff parties, small gifts, or occasional travel expenses, you can streamline the process and ensure compliance with HMRC’s requirements.
But how does this all work in practice? And what exactly is involved in setting up and managing a PSA? Buckle up, because we're about to dive deep into the world of HMRC Settlement Agreements, breaking down the nuts and bolts of the taxation system that underpins them. Whether you’re an employer looking to simplify your tax reporting or just someone curious about the intricacies of the UK’s tax system, this guide will walk you through everything you need to know.
A PAYE Settlement Agreement (PSA) is a voluntary arrangement between an employer and HMRC that allows the employer to make a single annual payment to cover the tax and National Insurance Contributions (NICs) on minor, irregular, or impracticable employee benefits and expenses. This simplifies the administrative burden of reporting these benefits individually through payroll or P11D forms. A PAYE Settlement Agreement (PSA) with HMRC allows employers to settle the tax and National Insurance Contributions (NICs) due on certain expenses and benefits provided to employees with a single annual payment. This arrangement simplifies the reporting process and ensures compliance while reducing the administrative burden for employers.
Understanding the PAYE Settlement Agreement
A PSA is a voluntary agreement that enables employers to pay the tax and Class 1B NICs on specific taxable benefits provided to employees. These benefits are typically minor, irregular, or impracticable to tax through the usual PAYE (Pay As You Earn) system. By using a PSA, employers can avoid including these benefits in employees' payroll calculations or reporting them on P11D forms at the end of the tax year.
Key Features of a PSA
1. Definition and Purpose
A PSA is a formal agreement made between an employer and HM Revenue & Customs (HMRC). This agreement allows the employer to make one annual payment to cover all the tax and National Insurance contributions (NICs) due on minor, irregular, or impractical expenses or benefits provided to their employees.
2. Benefits Covered
The types of benefits that can typically be included in a PSA include small gifts, non-routine staff entertainment, or other irregular benefits. These are items that are either impractical to apportion per employee or are minor enough not to justify individual taxation.
3. Advantages for Employers and Employees
For employers, the primary benefit of a PSA is the administrative ease it provides. By settling tax obligations centrally, the need for detailed reporting on individual P11D forms for each affected employee is removed. For employees, the advantage lies in receiving these benefits free of tax, which can be particularly beneficial for lower-value items that might otherwise disproportionately increase their tax burden.
Application and Setup
1. Initiating a PSA
Employers need to apply to HMRC to set up a PSA. This involves agreeing with HMRC on exactly what expenses and benefits will be included in the agreement. The process is now simplified through a new online service launched by HMRC, allowing employers and their agents to apply for, amend, or cancel a PSA digitally.
2. Deadline for Application
The deadline to apply for a PSA each year is the 6th of July following the end of the tax year in which the benefits were provided. Employers who wish to initiate or renew their PSA must do so by this date to ensure compliance for that tax year.
Calculation and Payment
1. Calculating the Tax and NICs
Once a PSA is in place, the employer is responsible for calculating the tax and NICs due on the benefits covered by the agreement. This calculation should take into account the combined value of the benefits provided and the tax rates applicable to the employees benefiting from them.
2. Payment Deadlines
Payments under a PSA must be made by the 22nd of October following the end of the tax year to which the PSA applies, or by the 19th if payment is made by post. Failure to meet these deadlines can result in fines and interest charges (GOV.UK).
A PAYE Settlement Agreement is an efficient mechanism for managing the tax implications of providing non-cash benefits to employees. It simplifies the administrative process for employers while providing a tax-efficient way to give minor benefits to employees. In the next part of this article, we will delve deeper into the operational nuances of PSAs, exploring case studies and detailed procedural insights to provide employers and HR professionals with a thorough understanding of how to effectively implement and manage PSAs.
Benefits Covered by a PSA
The types of benefits that can be included in a PSA are categorized as minor, irregular, or impracticable:
Minor Benefits:
These are low-value benefits that do not qualify for the trivial benefits exemption. Examples include small gifts, incentive awards, staff entertainment tickets, and non-business expenses exceeding the daily limit.
Irregular Benefits:
Benefits provided on an irregular basis, such as occasional relocation expenses exceeding the tax-free limit, costs for attending overseas conferences, and non-business travel expenses for accompanying spouses.
Impracticable Benefits:
Benefits where it is difficult to allocate a value to individual employees or operate PAYE, such as shared use of company buses, free chiropody care, and non-exempt Christmas parties.
What Cannot Be Included in a PSA
Certain items are excluded from PSAs:
Cash payments, including bonuses and round sum allowances.
High-value benefits like company cars and medical insurance.
Regular benefits, which should be reported through payroll or P11D forms.
How to Obtain a PSA
To set up a PSA, an employer must agree on the benefits to be covered with HMRC. This involves writing to HMRC or applying online. The process includes the following steps:
Application:
Employers can apply online through the HMRC portal using their PAYE reference, business contact details, and a description of the benefits to be included. Alternatively, applications can be made by post.
Agreement:
HMRC reviews the application and, if approved, sends two copies of form P626 for the employer to sign and return. One copy is retained by HMRC, and the other forms the PSA agreement for the employer.
Annual Reporting:
Each tax year, the employer calculates the tax and NICs due on the benefits covered by the PSA and submits these computations to HMRC. The tax is calculated on a grossed-up basis to account for the employer paying the tax liability on behalf of the employee.
The tax and NICs must be paid by 19 October (or 22 October for electronic payments) following the end of the tax year to which the PSA applies.
Advantages of a PSA
A PSA provides several advantages for employers:
Administrative Ease: By consolidating multiple tax and NIC payments into a single annual payment, employers can significantly reduce administrative tasks.
Compliance: It ensures that all minor, irregular, or impracticable benefits are correctly taxed, reducing the risk of non-compliance.
Employee Morale: Employees do not see a tax liability on these benefits, which can help maintain morale and motivation.
Understanding the intricacies of a PAYE Settlement Agreement is crucial for UK employers who wish to simplify their tax reporting processes and ensure compliance with HMRC regulations. By covering certain benefits under a PSA, employers can streamline their administrative tasks, avoid penalties, and foster a positive workplace environment.
Operational Details of a PSA
1. What Can Be Included
PSAs are designed to cover expenses that are minor, irregular, or impractical to attribute to individual employees. Examples include:
Minor: Non-cash gifts under a certain value, such as small birthday presents or flowers.
Irregular: Costs incurred from employee relocation exceeding the tax-free allowance, or occasional travel expenses that are not part of regular commuting.
Impractical: Shared employee expenses such as a team-building event where dividing the cost per employee is unreasonable.
Understanding what can be included is crucial for employers to ensure they are complying with HMRC guidelines while optimizing the benefit for employees and the organization.
2. Exclusions from a PSA
Certain benefits cannot be included in a PSA and must be reported separately. These typically include items that are provided under salary sacrifice arrangements or are non-taxable, such as contributions to registered pension schemes and in-house sports facilities.
3. Annual Review and Renewal
A PSA is not a set-and-forget arrangement. It must be reviewed and renewed annually to ensure that all included benefits are still appropriate and that no new types of expenses or benefits that should be included are missed. This annual renewal process is an opportunity for employers to adjust the scope of the PSA as necessary.
Managing PSA Compliance
1. Record-Keeping
Employers must keep accurate records of all benefits and expenses included in the PSA. These records should detail the nature of the benefit, its value, the employees who received it, and the reason it qualifies for inclusion in the PSA. This documentation will be crucial in the event of an HMRC audit.
2. Calculating and Reporting Liabilities
After determining which benefits are included in the PSA, the employer must calculate the total value of these benefits, apply the appropriate tax and NIC rates, and report the resulting figures to HMRC. This includes submitting the necessary forms and making payment for the tax and NICs due.
3. Payment and Deadlines
As mentioned previously, the payment for the tax and NICs due under a PSA must be made by the 22nd of October following the end of the tax year. This deadline is crucial to avoid penalties and interest for late payments.
Case Studies and Practical Examples
To provide a clearer understanding of how PSAs are applied in real-world scenarios, consider the following examples:
A technology company provides an annual tech gadget gift to its employees valued at under £50 each. Including this in a PSA simplifies the tax handling process.
A consultancy firm covers the cost of an irregular team-building retreat, which would be complex to apportion per employee for tax purposes. A PSA can cover this cost effectively.
How the Taxation System Works Under an HMRC Settlement Agreement
In this section, we will delve into the detailed mechanics of how the taxation system operates under an HMRC settlement agreement (PSA). We will explore the processes involved in calculating and reporting taxes and National Insurance Contributions (NICs) for different types of benefits covered by a PSA.
Calculation of Tax and NICs Under a PSA
The calculation of tax and NICs for benefits included in a PSA involves several steps. It is essential for employers to understand these steps to ensure accurate reporting and compliance with HMRC requirements.
Identifying the Benefits
The first step in the process is to identify which benefits are covered by the PSA. As mentioned in the previous section, these benefits must be minor, irregular, or impracticable to tax via PAYE. Once identified, the employer needs to categorize the benefits appropriately.
Grossing Up
The tax due on benefits included in a PSA is calculated on a grossed-up basis. This means that the employer pays the tax on behalf of the employee, and the amount of tax is increased to reflect this. The formula for grossing up is:
Grossed-Up Value=Net Value /1−Tax RateGrossed-Up Value=1−Tax RateNet Value
For example, if the benefit is valued at £1,000 and the tax rate is 20%, the grossed-up value would be:
Grossed- Up Value =£1,000 / 1−0.20, = £1,000 / 0.80, =£1,250
This calculation ensures that the employer covers the employee's tax liability, and the amount paid to HMRC includes the tax that would have been due from the employee.
National Insurance Contributions
In addition to the grossed-up tax, employers must also calculate and pay Class 1B NICs on the benefits.
Class 1B NICs are payable on both the value of the benefits and the tax due. The current rate for Class 1B NICs is 13.8%.
Using the example above, if the grossed-up value of the benefit is £1,250, the Class 1B NICs would be calculated as follows:
Class 1B NICs = 13.8% × £1,250 = £172.50
Therefore, the total liability for the employer for this benefit would be the sum of the grossed-up tax and the Class 1B NICs:
Total Liability = £1,250 + £172.50 =£1,422.50
Reporting and Paying the PSA
Annual Reporting
Once the tax year ends, the employer needs to calculate the total amount of tax and NICs due under the PSA and report this to HMRC. This involves completing form PSA1, which summarizes the benefits and the associated tax and NICs.
Deadlines and Payment
Employers must submit their PSA calculations and make the payment to HMRC by 19 October following the end of the tax year (22 October if paying electronically). It is crucial to meet these deadlines to avoid penalties and interest charges.
Reviewing and Renewing the PSA
A PSA is typically an enduring agreement, meaning it continues until either the employer or HMRC decides to cancel or amend it. However, it is advisable for employers to review their PSA annually to ensure that all relevant benefits are included and that the agreement remains up to date.
Practical Examples
To provide a clearer understanding, let’s look at some practical examples of how the taxation system works under a PSA.
Example 1: Staff Entertainment Event
An employer organizes a staff entertainment event that costs £10,000. This event does not qualify for the annual events exemption because it exceeds the monetary limit. The benefit needs to be reported under a PSA.
Total Benefit Value: £10,000
Number of Employees: 100
Tax Rate: 20% (assuming all employees are basic rate taxpayers)
Calculate the grossed-up value:
Grossed-Up Value = £10,0001 − 0.20=£12,500
Calculate the Class 1B NICs:
Class 1B NICs = 13.8 % × £12,500 = £1,725
Total liability to HMRC:
Total Liability = £12,500 + £1,725 = £14,225
Example 2: Non-Business Travel Expenses
An employee incurs £500 in non-business travel expenses that are not covered by any exemption and are considered irregular.
Total Benefit Value: £500
Tax Rate: 40% (assuming the employee is a higher rate taxpayer)
Calculate the grossed-up value:
Grossed-Up Value = £5001−0.40 = £833.33
Calculate the Class 1B NICs:
Class 1B NICs = 13.8% × £833.33 = £114.99
Total liability to HMRC:
Total Liability = £833.33 + £114.99 = £948.32
Ensuring Compliance
Employers must maintain accurate records of all benefits included in a PSA and ensure that they are correctly categorized and valued. Regular reviews and audits can help prevent errors and ensure compliance with HMRC requirements.
Common Pitfalls and Best Practices
Common Pitfalls
Incorrect Valuation: Misvaluing benefits can lead to incorrect tax and NIC calculations.
Missing Deadlines: Late submissions or payments can result in penalties and interest charges.
Excluding Exempt Benefits: Including benefits that are already exempt can lead to unnecessary tax and NIC payments.
Best Practices
Regular Reviews: Conduct annual reviews of the PSA to ensure it remains current and comprehensive.
Accurate Record-Keeping: Maintain detailed records of all benefits included in the PSA.
Seek Professional Advice: Consult with tax professionals to ensure accurate calculations and compliance.
A PAYE Settlement Agreement offers a streamlined method for employers to manage the tax and NICs on minor, irregular, or impracticable benefits. By understanding the detailed mechanics of calculating and reporting these benefits, employers can ensure compliance with HMRC requirements and avoid common pitfalls.
In the final part of this article, we will discuss the broader implications of PSAs, including their impact on employer-employee relationships, financial planning, and strategic use in employee benefit programs.
Strategic Implications and Broader Impact of PAYE Settlement Agreements (PSAs)
In the final part of this article, we will explore the broader implications and strategic considerations of using PAYE Settlement Agreements (PSAs) in employee benefit programs. Understanding the strategic impact of PSAs can help employers make informed decisions about their use, ensuring they align with broader organizational goals and compliance requirements.
Strategic Use of PSAs in Employee Benefit Programs
PAYE Settlement Agreements offer a simplified method for employers to handle certain taxable benefits and expenses. By using a PSA, employers can manage these benefits more effectively and strategically, leveraging the agreement to enhance employee satisfaction and organizational efficiency.
Enhancing Employee Satisfaction
One of the primary strategic benefits of a PSA is its potential to enhance employee satisfaction. By covering the tax liabilities on certain benefits, employers can ensure that employees receive the full value of these benefits without the burden of additional taxes. This can be particularly beneficial in scenarios such as:
Staff Entertainment: Hosting events, parties, and team-building activities without employees having to worry about the tax implications.
Recognition and Rewards: Providing awards, gifts, and incentives as a token of appreciation without reducing their value through tax deductions.
Support During Transitions: Assisting with relocation expenses or non-business travel costs, making transitions smoother for employees.
By reducing the perceived financial impact of these benefits, employers can foster a more positive work environment, enhancing overall morale and productivity.
Streamlining Administrative Processes
From an administrative perspective, PSAs can significantly reduce the complexity associated with reporting and managing employee benefits. By consolidating multiple tax and NIC payments into a single annual payment, employers can:
Reduce Paperwork: Minimize the need for multiple P11D forms and payroll adjustments.
Simplify Compliance: Ensure all relevant benefits are correctly taxed in one go, reducing the risk of errors and omissions.
Save Time: Free up HR and payroll departments to focus on other strategic initiatives by reducing the time spent on tax calculations and reporting.
This streamlined approach not only saves time but also ensures that the organization remains compliant with HMRC regulations, avoiding potential fines and penalties.
Financial Planning and Budgeting
Effective financial planning is crucial for any organization, and PSAs can play a significant role in budgeting and forecasting. By understanding the tax liabilities associated with employee benefits and incorporating them into annual financial plans, employers can:
Predict Costs Accurately: Estimate the financial impact of providing various benefits and include these costs in annual budgets.
Manage Cash Flow: Plan for the lump sum payments required under a PSA, ensuring sufficient funds are available when needed.
Evaluate Benefit Programs: Assess the cost-effectiveness of different benefit programs and make informed decisions about which benefits to offer.
For example, if an organization plans to provide a significant number of staff entertainment events or recognition awards, understanding the associated tax liabilities can help in allocating resources more effectively.
Compliance and Risk Management
PSAs also play a crucial role in compliance and risk management. By ensuring that all taxable benefits are correctly reported and taxed, employers can:
Avoid Penalties: Reduce the risk of fines and penalties associated with non-compliance or incorrect reporting.
Mitigate Risks: Ensure that the organization is adhering to HMRC regulations, reducing the risk of audits and investigations.
Maintain Good Standing: Foster a positive relationship with HMRC by demonstrating a commitment to compliance and accurate reporting.
Example of Compliance Benefits
Consider an organization that regularly provides non-business travel expenses and staff entertainment events. Without a PSA, each of these benefits would need to be reported individually, increasing the administrative burden and the risk of errors. By using a PSA, the organization can consolidate these benefits into a single report, ensuring that all tax liabilities are accurately captured and paid, thus maintaining compliance with HMRC regulations.
Practical Considerations for Implementing a PSA
While PSAs offer numerous strategic benefits, there are practical considerations that employers must keep in mind to maximize their effectiveness.
Accurate Record-Keeping
Maintaining accurate records is essential for the successful implementation of a PSA. Employers must ensure that they:
Document All Benefits: Keep detailed records of all benefits and expenses included in the PSA.
Track Employee Data: Maintain up-to-date information on the number of employees and their tax bands to ensure accurate calculations.
Review Annually: Conduct annual reviews to ensure that all relevant benefits are included and that the PSA remains up to date.
Seeking Professional Advice
Given the complexity of tax regulations and the calculations involved, seeking professional advice can be invaluable. Tax professionals can assist with:
Application and Setup: Helping employers navigate the application process and set up the PSA correctly.
Calculations: Ensuring accurate calculations of tax and NICs, taking into account different tax bands and exemptions.
Ongoing Compliance: Providing guidance on maintaining compliance and managing any changes to the PSA.
Engaging with HMRC
Proactive engagement with HMRC can also help in managing a PSA effectively. Employers should:
Communicate Regularly: Keep open lines of communication with HMRC to address any questions or concerns.
Stay Informed: Stay updated on any changes to tax regulations or PSA requirements that may impact their agreement.
Seek Clarifications: When in doubt, seek clarifications from HMRC to ensure that all benefits are correctly reported and taxed.
A PAYE Settlement Agreement (PSA) is a powerful tool for UK employers, offering a streamlined method to manage and report certain taxable benefits. By understanding the strategic implications and broader impact of PSAs, employers can enhance employee satisfaction, streamline administrative processes, and ensure compliance with HMRC regulations.
Effective use of a PSA requires careful planning, accurate record-keeping, and regular reviews. By incorporating PSAs into their financial planning and benefit strategies, employers can achieve greater efficiency and compliance, ultimately contributing to a positive and supportive work environment.
By following best practices and seeking professional advice, employers can leverage PSAs to their full advantage, ensuring that both the organization and its employees benefit from this streamlined approach to managing taxable benefits.
Pros and Cons of the PAYE Settlement Agreement (PSA)
The PAYE Settlement Agreement (PSA) offers a streamlined method for employers to manage the tax and National Insurance Contributions (NICs) on certain employee benefits and expenses. While PSAs provide several advantages, they also come with some drawbacks. Understanding both the pros and cons is essential for employers considering the implementation of a PSA.
Pros of the PAYE Settlement Agreement
Simplified Administration
Reduction in Paperwork: One of the most significant advantages of a PSA is the reduction in administrative burden. Instead of reporting each taxable benefit on individual P11D forms, employers can consolidate these into a single annual payment.
Ease of Compliance: PSAs simplify the process of complying with HMRC regulations, making it easier for employers to meet their tax obligations without the risk of errors or omissions.
Enhanced Employee Satisfaction
No Tax Burden on Employees: Employees receive the full value of the benefits without the concern of additional tax liabilities, which can improve morale and job satisfaction.
Attractive Benefit Packages: By covering the tax on certain benefits, employers can offer more attractive benefit packages that are tax-efficient for the employees.
Cost Predictability
Budgeting and Planning: PSAs allow employers to predict their tax liabilities for employee benefits more accurately, aiding in better financial planning and budgetingy.
Avoiding Unexpected Costs: With a PSA in place, employers can avoid unexpected tax bills and manage cash flow more effectively.
Flexibility in Benefit Provision
Customizable Agreements: Employers can tailor the PSA to include various minor, irregular, or impracticable benefits, offering flexibility in how they reward employees.
Wide Range of Covered Benefits: Benefits such as staff entertainment, non-cash awards, and minor gifts can all be included under a PSA, providing a broad scope for employee incentives.
Regulatory Compliance
Reduced Risk of Penalties: By ensuring all relevant benefits are taxed appropriately, PSAs help employers avoid penalties associated with non-compliance or incorrect tax reporting.
Regular HMRC Engagement: The process of setting up and maintaining a PSA involves regular interaction with HMRC, which can foster a better understanding of tax obligations and compliance requirements.
Cons of the PAYE Settlement Agreement
Complexity in Setup and Maintenance
Initial Setup Challenges: Establishing a PSA can be complex, requiring detailed documentation and agreement on what benefits are covered. This process can be time-consuming and may require professional advice (GOV.UK) (Tax Insider).
Annual Reviews: While PSAs are enduring agreements, they still require annual reviews to ensure all benefits are appropriately included and compliant with current regulations.
Cost Implications
High Tax Costs: The tax and NICs on benefits are calculated on a grossed-up basis, which can significantly increase the overall cost to the employer. For higher-rate taxpayers, the marginal tax rate can approach 90%, making some benefits expensive to cover under a PSA.
Potential for Overpayment: If benefits covered by the PSA are already exempt or could be taxed more efficiently through other means, employers might end up overpaying tax and NICs.
Limited Scope of Benefits
Exclusions: Not all benefits can be included in a PSA. Regular, high-value benefits such as company cars, medical insurance, and cash payments must be reported separately, which can limit the usefulness of the agreement.
Specific Criteria: Benefits must be minor, irregular, or impracticable to be eligible for inclusion in a PSA, which may not cover all types of employee benefits an employer wishes to offer.
Administrative Oversight
Need for Accurate Record-Keeping: Employers must maintain detailed records of all benefits included in the PSA, which requires diligent record-keeping and administrative oversight.
Ongoing Compliance Requirements: Even with a PSA, employers need to stay updated with changes in tax laws and ensure continuous compliance, which can add to the administrative workload.
Dependency on HMRC Approvals
Approval Delays: Obtaining approval from HMRC for a PSA can sometimes be a lengthy process, potentially delaying the implementation of the agreement and causing administrative headaches (Tax Insider).
Strict HMRC Review: HMRC reviews the PSA annually, and any discrepancies or errors in the calculations can lead to additional scrutiny and potential penalties.
The PAYE Settlement Agreement provides a valuable mechanism for employers to manage the tax and NICs on certain employee benefits efficiently. It offers numerous advantages, including simplified administration, enhanced employee satisfaction, and predictable costs. However, it also presents challenges such as complexity in setup, high tax costs, and the need for meticulous record-keeping.
Employers must weigh these pros and cons carefully to determine whether a PSA is the right fit for their organization. By understanding the full implications of a PSA, businesses can make informed decisions that align with their financial strategies and compliance needs, ultimately contributing to a positive and productive workplace environment.
How are Benefits Valued For PSA Purposes?
When valuing benefits for Pay As You Earn Settlement Agreement (PSA) purposes in the UK, it's crucial for employers to accurately assess the fair market value of the benefits provided to employees. This valuation is key to ensuring that the correct amount of tax and National Insurance contributions (NICs) are paid on these benefits. Below, we explore the principles of valuation for PSA purposes and provide examples to illustrate how different types of benefits might be valued.
Valuation Principles
For PSA purposes, benefits are valued based on their fair market value—the price that an informed buyer would pay to an informed seller in an arm's length transaction. The objective is to determine what the benefit would cost in a normal market setting, not merely what the employer actually paid for it, which might include discounts or bulk purchase reductions.
1. Cash Equivalent Value
The cash equivalent value is the amount that an employee would have to pay to obtain the benefit themselves, including VAT where applicable. This is the most straightforward valuation method and is commonly used for tangible benefits.
2. Cost to Employer
If the fair market value isn't readily ascertainable, the cost to the employer may be used as an approximation. This includes all costs incurred by the employer to provide the benefit, such as purchase price, delivery charges, and installation fees.
3. Third-party Valuations
For some benefits, especially those that are unique or where no clear market price is available (like custom-made items), obtaining a valuation from a third-party expert might be necessary.
Examples of Benefit Valuations
Example 1: Company Car
For a company car provided to an employee, the valuation would include not only the lease or purchase price but also the cost of maintenance, insurance, and fuel, if these are covered by the employer. The value assessed would be what the employee would have to pay to lease or purchase and run a similar car themselves.
Example 2: Accommodation
If an employer provides accommodation, the valuation is based on the rental value of similar accommodation in the same area. Additional costs like utilities, which are paid by the employer, are also added to the valuation.
Example 3: Private Health Insurance
For private health insurance, the premium paid by the employer is generally a clear indicator of its value. However, if additional services or coverages are provided that aren't included in the standard premium, these costs must also be included in the valuation.
Example 4: Annual Staff Party
An annual staff party might seem challenging to value on a per-employee basis. However, the total cost of the event divided by the number of attendees provides a reasonable per capita cost, which can be used for PSA purposes.
Example 5: Training Courses
If the training provided is specific to the employer’s operations and not generally available to the public, its valuation might simply be the cost incurred by the employer in providing the training. This includes trainer fees, materials, and venue costs.
Special Considerations
Shared Benefits: When a benefit is shared among multiple employees (e.g., a staff party), the cost should be divided equally among those who benefit unless a more precise allocation can be established.
Seasonal or One-off Benefits: Items like Christmas hampers or tickets to a one-off event should be valued at what it would cost the employee to purchase them directly.
Irregular Benefits: For benefits that do not have a regular provision pattern or fixed cost, such as the use of a company holiday home, a reasonable estimate should be made based on comparable rental values or similar metrics.
Compliance and Documentation
Employers must maintain robust documentation of how benefits are valued for PSA purposes. This documentation should be able to withstand scrutiny from HMRC in case of an audit. It's advisable for employers to have a consistent methodology for benefit valuation and to keep records of any quotes, receipts, contracts, or calculations that support their valuations.
Valuing benefits correctly for PSA purposes is not only a compliance requirement but also a good practice to ensure fairness in the taxation process for employees. By applying these principles and using real-life examples as guides, employers can navigate the complexities of benefit valuation more effectively.
How to Apply for a PAYE Settlement Agreement? - A Step by Step Guide
A PAYE Settlement Agreement (PSA) is an arrangement that allows UK employers to simplify the tax treatment of minor, irregular, or impracticable expenses and benefits provided to their employees. By consolidating these into a single annual payment, employers can reduce administrative burdens and ensure compliance with HMRC regulations. Here’s a comprehensive step-by-step guide on how to apply for a PAYE Settlement Agreement.
Step 1: Determine Eligibility
Before applying for a PSA, ensure that your business and the benefits you intend to include are eligible.
Eligible Benefits: Only minor, irregular, or impracticable benefits can be included in a PSA. This typically includes staff entertainment (such as annual parties), small gifts, non-cash awards, and non-business travel expenses.
Excluded Benefits: Regular or high-value benefits such as cash bonuses, company cars, and medical insurance cannot be included.
Step 2: Prepare Necessary Information
Gather all the necessary information and documentation required for the application process.
Employer PAYE Reference: This is a unique reference number used by HMRC to identify your business.
Contact Details: Ensure you have up-to-date contact details for your business, including the name of the business, address, telephone number, and email address.
Benefit Descriptions: Detailed descriptions of the benefits and expenses you wish to include in the PSA.
Step 3: Conduct an Internal Audit
Before applying, conduct an internal audit to identify all the benefits and expenses that could be included in the PSA.
Identify Benefits:
List all the minor, irregular, or impracticable benefits provided to employees over the past year.
Categorize these benefits to determine which ones can be included in the PSA.
Calculate Values:
Calculate the total value of each benefit category.
Ensure you have accurate records of these values as they will be needed for the application.
Step 4: Apply Online or by Post
You can apply for a PSA either online through the HMRC portal or by post.
Online Application
Access the HMRC Portal:
Go to the HMRC website and navigate to the section for applying for a PAYE Settlement Agreement.
You will need to sign in with your Government Gateway user ID and password.
Complete the Online Form:
Fill out the online form with your PAYE reference, business contact details, and descriptions of the benefits to be included.
Review the information carefully before submitting the form.
Submit the Application:
Submit the application electronically. HMRC will review the application and contact you if any further information is needed.
Postal Application
Prepare the Application Letter:
Write a letter to HMRC Business Tax and Customs describing the benefits and expenses you want the PSA to cover.
Send the Application:
Send the letter to the following address:
Step 5: Await HMRC Confirmation
After submitting your application, HMRC will review it to ensure all the necessary information is provided and the benefits listed are eligible for inclusion.
Review Process:
HMRC will check the details and may contact you for additional information or clarification if needed.
Receive Confirmation:
Once approved, HMRC will send two copies of form P626. You need to sign and return both copies to HMRC.
HMRC will then authorize the PSA and send back one copy as confirmation.
Step 6: Implement the PSA
Once the PSA is in place, implement it within your business processes to ensure proper tracking and reporting.
Record Keeping:
Maintain accurate records of all benefits included in the PSA.
Regularly update these records to reflect any changes or new benefits added.
Annual Review:
Conduct an annual review of the PSA to ensure it remains up-to-date and includes all relevant benefits.
Make any necessary adjustments or amendments to the agreement as required.
Step 7: Calculate and Report the PSA
At the end of the tax year, calculate the total tax and NICs due under the PSA and report this to HMRC.
Valuing the Benefits:
Compile a list of all the benefits provided during the year and their respective values.
Ensure these values are accurate and up-to-date.
Grossing Up:
Calculate the grossed-up value of the benefits, accounting for the tax that the employer will pay on behalf of the employees.
Use the formula: Grossed-Up Value=Net Value1−Tax RateGrossed-Up Value=1−Tax RateNet Value
Calculating Class 1B NICs:
Calculate the Class 1B NICs on both the value of the benefits and the tax due.
The current rate for Class 1B NICs is 13.8%.
Complete Form PSA1:
Use form PSA1 to summarize the benefits and the associated tax and NICs.
Submit the completed form to HMRC by 19 October (or 22 October for electronic payments) following the end of the tax year.
Step 8: Make the Payment
Ensure the payment for the calculated tax and NICs is made on time to avoid penalties and interest charges.
Payment Deadline:
The payment must be made by 19 October (or 22 October for electronic payments) following the end of the tax year.
Methods of Payment:
Payments can be made electronically via the HMRC portal or by other accepted payment methods as specified by HMRC.
Step 9: Review and Update Annually
While the PSA is an enduring agreement, it should be reviewed annually to ensure it remains accurate and comprehensive.
Annual Review:
Review the PSA each year to ensure all relevant benefits are included.
Make any necessary amendments or adjustments in consultation with HMRC.
Stay Informed:
Keep up-to-date with any changes in HMRC regulations or tax laws that may affect your PSA.
Seek professional advice if needed to ensure ongoing compliance.
Applying for a PAYE Settlement Agreement can significantly streamline the process of managing employee benefits and ensuring compliance with HMRC regulations. By following this step-by-step guide, employers can navigate the application process effectively, from determining eligibility and preparing necessary information to submitting the application and managing the PSA annually. With proper implementation and regular reviews, a PSA can provide substantial administrative and financial benefits to both the employer and employees.
A Case Study of Entering and Dealing With a PAYE Settlement Agreement
Meet John Thompson, the HR manager at a mid-sized tech company in Manchester, UK. As the company grows, John realizes that managing the taxation on various employee benefits and expenses has become increasingly complex. To streamline the process and ensure compliance with HMRC regulations, John decides to explore the possibility of entering into a PAYE Settlement Agreement (PSA).
Step 1: Identifying the Need for a PSA
John's company regularly provides a range of benefits to employees, including staff entertainment events, small gifts, and non-cash awards. These benefits, while appreciated by employees, require meticulous tracking and reporting to HMRC to ensure correct tax and National Insurance Contributions (NICs) are paid.
John identifies the following key reasons for considering a PSA:
Simplification of Administration: Consolidating various benefits into a single annual payment to reduce administrative burden.
Compliance: Ensuring all taxable benefits are correctly reported and taxed.
Employee Satisfaction: Allowing employees to enjoy benefits without worrying about the tax implications.
Step 2: Preparing for the Application
Before applying for a PSA, John conducts an internal audit to identify all the benefits and expenses that could be included in the agreement. He categorizes them into minor, irregular, or impracticable benefits:
Minor Benefits:
Employee recognition awards (e.g., employee of the month awards worth £100 each).
Small gifts such as vouchers and holiday gifts.
Irregular Benefits:
Non-business travel expenses for attending industry conferences.
Relocation expenses exceeding the £8,000 tax-free limit.
Impracticable Benefits:
Costs of staff entertainment events such as Christmas parties and team-building retreats.
Step 3: Applying for the PSA
John decides to apply for the PSA online through the HMRC portal. Here are the steps he follows:
Gathering Required Information:
Employer PAYE reference.
Business contact details including the name of the business, address, telephone number, and email address.
Description of the benefits to be included.
Submitting the Application:
John fills out the online form, detailing the benefits and expenses to be included in the PSA.
HMRC reviews the application and, upon approval, sends two copies of form P626 for John to sign and return.
Confirmation:
After signing and returning the forms, John receives a confirmation from HMRC. The PSA is now in place, covering the specified benefits for the tax year.
Step 4: Calculating the Tax and NICs
At the end of the tax year, John needs to calculate the total tax and NICs due under the PSA. He uses the following steps to ensure accuracy:
Valuing the Benefits:
John compiles a list of all the benefits provided during the year, along with their values.
For instance, the total cost of staff entertainment events is £15,000, employee recognition awards amount to £3,000, and non-business travel expenses total £5,000.
Grossing Up the Values:
The tax on the benefits is calculated on a grossed-up basis. For example, if the tax rate is 20%, the grossed-up value is calculated as follows: Grossed-Up Value=Net Value / 1−Tax Rate
For the staff entertainment events costing £15,000: Grossed-Up Value = £15,000 / 1−0.20 = £18,750G
Calculating Class 1B NICs:
Class 1B NICs are payable on both the value of the benefits and the tax due. The rate for Class 1B NICs is 13.8%.
For the grossed-up value of £18,750: Class 1B NICs = 13.8% × £18,750 = £2,587.50
Total Liability:
The total liability to HMRC for the staff entertainment events: Total Liability=£18,750+£2,587.50=£21,337.50.
John repeats these calculations for all other benefits included in the PSA. For simplicity, let’s assume the employee recognition awards and non-business travel expenses have similar tax and NICs implications. The combined grossed-up values and Class 1B NICs for these benefits are calculated in a similar manner.
Step 5: Reporting and Payment
John must report the total tax and NICs due under the PSA to HMRC by completing form PSA1. He ensures the calculations are accurate and submits the form online. The payment must be made by 19 October (or 22 October for electronic payments) following the end of the tax year.
Step 6: Reviewing the PSA
Although the PSA is an enduring agreement, John understands the importance of reviewing it annually to ensure it remains current and covers all relevant benefits. He sets a reminder to conduct this review each year and updates the agreement with any new benefits or changes in the company’s benefit structure.
Example Calculations for the Entire PSA
Here’s a summary of John’s total calculations for the PSA:
Staff Entertainment Events:
Net Value: £15,000
Grossed-Up Value: £18,750
Class 1B NICs: £2,587.50
Total Liability: £21,337.50
Employee Recognition Awards:
Net Value: £3,000
Grossed-Up Value: £3,750
Class 1B NICs: £517.50
Total Liability: £4,267.50
Non-Business Travel Expenses:
Net Value: £5,000
Grossed-Up Value: £6,250
Class 1B NICs: £862.50
Total Liability: £7,112.50
Overall Total Liability:
£21,337.50 + £4,267.50 + £7,112.50 = £32,717.50
Through this hypothetical case study, we see how John Thompson effectively navigates the process of setting up and managing a PAYE Settlement Agreement. By identifying eligible benefits, applying for the PSA, and accurately calculating the tax and NICs, John ensures compliance with HMRC regulations while simplifying the administrative burden for his company. This streamlined approach not only benefits the organization but also enhances employee satisfaction by eliminating their tax liabilities on certain benefits.
How a Tax Accountant Can Help You with a PAYE Settlement Agreement
A PAYE Settlement Agreement (PSA) is a valuable tool for UK employers, allowing them to simplify the tax treatment of minor, irregular, or impracticable expenses and benefits provided to employees. However, setting up and managing a PSA can be complex and time-consuming. This is where a tax accountant comes in. Here’s how a tax accountant can assist you with a PAYE Settlement Agreement, ensuring compliance and efficiency.
Expert Guidance and Advice
1. Understanding Eligibility:
A tax accountant can help you determine which benefits and expenses are eligible for inclusion in a PSA. This involves categorizing benefits as minor, irregular, or impracticable. For instance, staff entertainment, small gifts, and non-cash awards might qualify, but regular cash bonuses or high-value benefits like company cars do not.
2. Tailored Advice:
Every business is unique, and so are its employee benefits. A tax accountant can provide tailored advice specific to your business, helping you understand which benefits can be included in a PSA and how to maximize its advantages while ensuring compliance with HMRC regulations.
Streamlined Application Process
3. Preparing the Application:
The application process for a PSA can be daunting. A tax accountant will assist in gathering all necessary information, such as your PAYE reference, business contact details, and detailed descriptions of the benefits to be included. They ensure that all required documentation is complete and accurate.
4. Submission Support:
Whether applying online or by post, a tax accountant can guide you through the submission process. They can fill out the online forms on your behalf, ensuring that all information is correctly entered and submitted in a timely manner, thereby reducing the risk of application rejection or delays.
Accurate Calculations and Reporting
5. Valuing Benefits:
Accurate valuation of benefits is crucial. A tax accountant can help you compile a comprehensive list of all benefits provided during the year, ensuring that each one is correctly valued. They will account for various factors such as the frequency and nature of benefits provided.
6. Grossing Up:
The tax due on benefits included in a PSA is calculated on a grossed-up basis, which can be complex. A tax accountant uses the correct formulas to ensure that the grossed-up values are accurately calculated, taking into account the relevant tax rates (Tax Insider).
7. Calculating Class 1B NICs:
Class 1B NICs are payable on the value of the benefits and the tax due. A tax accountant ensures that these calculations are accurate and comply with the current rates set by HMRC, thereby preventing underpayment or overpayment.
Ensuring Compliance
8. Staying Updated with Regulations:
Tax laws and regulations are subject to change. A tax accountant stays abreast of these changes, ensuring that your PSA remains compliant with the latest HMRC requirements. This proactive approach helps in avoiding penalties and ensuring smooth operation.
9. Reviewing and Amending the PSA:
A PSA is an enduring agreement but should be reviewed annually. A tax accountant conducts these reviews to ensure all relevant benefits are included and updates the agreement as necessary. This includes making amendments in consultation with HMRC to cover any new benefits or changes in the benefit structure.
Efficient Administration
10. Record Keeping:
Maintaining accurate records is essential for compliance. A tax accountant helps in setting up a robust record-keeping system that tracks all benefits included in the PSA. This includes maintaining detailed logs of dates, values, and recipients of the benefits.
11. Annual Reporting:
At the end of the tax year, a tax accountant assists in compiling the necessary reports. They prepare form PSA1, summarizing the benefits and the associated tax and NICs, and ensure it is submitted to HMRC on time. This avoids the risk of late submissions and potential penalties.
Financial Planning and Budgeting
12. Predicting Costs:
A tax accountant helps in predicting the financial impact of providing various benefits. By understanding the tax liabilities associated with these benefits, they aid in accurate financial planning and budgeting, ensuring that sufficient funds are allocated for the PSA payment.
13. Cash Flow Management:
Managing cash flow effectively is crucial. A tax accountant assists in planning for the lump sum payments required under a PSA, ensuring that your business has the necessary funds available when needed, thus avoiding cash flow issues.
Reducing Administrative Burden
14. Simplifying Processes:
By consolidating multiple tax and NIC payments into a single annual payment, a tax accountant significantly reduces the administrative burden on your HR and payroll departments. This allows your team to focus on other strategic initiatives.
15. Avoiding Errors:
Errors in tax calculations can lead to costly penalties. A tax accountant’s expertise ensures that all calculations are accurate, reducing the risk of errors and ensuring that the correct amounts are paid to HMRC.
Enhancing Employee Satisfaction
16. Maximizing Employee Benefits:
A tax accountant helps structure the PSA in a way that maximizes the value of employee benefits, enhancing employee satisfaction. Employees receive the full value of the benefits without worrying about the tax implications, contributing to higher morale and productivity.
17. Clear Communication:
Tax accountants can help communicate the benefits of a PSA to employees, ensuring they understand how it works and how it benefits them. This transparency helps in building trust and appreciation among the workforce.
Expert Problem Solving
18. Handling HMRC Queries:
If HMRC raises any queries or disputes the calculations, a tax accountant can represent your business, providing the necessary documentation and explanations to resolve the issues quickly and effectively.
19. Professional Advice:
In case of any uncertainties or complex scenarios, a tax accountant offers professional advice, guiding you through the best course of action to ensure compliance and optimize benefits.
20. Strategic Planning:
Finally, a tax accountant aids in strategic planning, helping you leverage the PSA to align with broader organizational goals. This includes advising on the most tax-efficient ways to structure employee benefits and ensuring that the PSA contributes positively to the company’s financial health.
In conclusion, a tax accountant plays a pivotal role in setting up and managing a PAYE Settlement Agreement. From providing expert advice and handling the application process to ensuring accurate calculations and maintaining compliance, their expertise can significantly simplify the process and enhance the efficiency of your business operations. By partnering with a tax accountant, you can ensure that your PSA is managed effectively, providing substantial administrative and financial benefits to both your organization and your employees.
FAQs about HMRC Settlement Agreement and Taxation System
Q1: How do I determine the tax rate applicable to benefits included in a PSA?
A: The tax rate for benefits included in a PSA is determined by the tax bands applicable to the employees receiving the benefits. The combined value of the benefits is added to their income to calculate the tax at their marginal rate.
Q2: Are there any types of businesses that cannot use a PSA?
A: No specific types of businesses are excluded from using a PSA. Any employer, regardless of industry, can apply for a PSA if they provide benefits that meet the criteria of being minor, irregular, or impractical to account for per employee.
Q3: Can PSA items be provided to directors of a company?
A: Yes, PSA items can be provided to directors. The same rules apply as to other employees, regarding the minor, irregular, or impractical nature of the benefits.
Q4: Is it mandatory to renew a PSA annually?
A: Yes, it is mandatory to review and potentially renew a PSA annually. This ensures that the agreement is up to date with any changes in the benefits provided or tax legislation.
Q5: What happens if an employer fails to renew their PSA?
A: If an employer fails to renew their PSA, they may have to report and pay tax and NICs on each benefit provided, through the regular end-of-year forms, which could result in higher administrative costs and potential penalties.
Q6: How do non-resident employees benefit from a PSA?
A: Non-resident employees benefit from a PSA in the same way resident employees do; they are not taxed on the benefits covered under the PSA. However, specific rules may apply depending on their tax residency status and agreements.
Q7: Can employers backdate a PSA?
A: Employers cannot backdate a PSA. The agreement must be applied for and agreed upon with HMRC before the benefits are provided for the tax year in which it will apply.
Q8: How are benefits valued for PSA purposes?
A: Benefits are valued at their fair market value for PSA purposes. If a benefit is difficult to value, employers should estimate a reasonable approximate value or seek guidance from HMRC.
Q9: Are vouchers considered for inclusion in a PSA?
A: Vouchers can be considered for inclusion in a PSA if they are used to provide minor or irregular benefits. However, cash vouchers or equivalents that are readily convertible to cash are not eligible.
Q10: What are the implications for benefits that are mistakenly left out of a PSA?
A: Benefits mistakenly left out of a PSA must be reported on the individual P11D forms for each employee, and employees will be responsible for the tax and NICs on those benefits.
Q11: Can a PSA cover expenses related to work-from-home setups?
A: Yes, expenses related to work-from-home setups can be covered by a PSA if they are considered minor or irregular, such as one-off purchases of equipment for remote working.
Q12: Are there specific forms to use when applying for a PSA?
A: Employers must use form PSA1 to apply for a PSA. This form helps communicate to HMRC the types of expenses and benefits they wish to include in the agreement.
Q13: What documentation is required when applying for a PSA?
A: When applying for a PSA, employers need to provide a detailed list of the types of benefits and expenses they intend to include, along with reasons why these should be covered by a PSA.
Q14: How long does it take to get approval for a PSA from HMRC?
A: The approval time for a PSA can vary, but typically it takes several weeks from the submission of the application to HMRC’s confirmation.
Q15: Are all employee benefits eligible for tax and NICs exemption under a PSA?
A: Not all employee benefits are eligible; only those that are minor, irregular, or impractical to divide among employees are covered under a PSA. Regular benefits like company cars or ongoing health insurance are not included.
Q16: Can training expenses be included in a PSA?
A: Training expenses can be included if they are considered irregular and not a routine part of the employee's professional development.
Q17: What are the consequences of incorrect calculations in a PSA?
A: Incorrect calculations in a PSA can lead to under or overpayment of tax and NICs, resulting in potential fines, penalties, or adjustments in future payments.
Q18: How does a PSA interact with other forms of employee remuneration?
A: A PSA is separate from other forms of remuneration. It specifically covers minor, irregular, or impractical benefits, whereas regular remuneration and benefits are processed through usual payroll and reporting mechanisms.
Q19: Can charitable donations be included in a PSA?
A: Charitable donations made on behalf of employees generally cannot be included in a PSA as they do not usually constitute a benefit to the employees themselves.
Q20: How should employers handle the termination of a PSA?
A: To terminate a PSA, employers need to notify HMRC in writing and ensure that all required tax and NICs on provided benefits up to the point of termination are fully accounted for and paid.
Q21 What is the primary purpose of a PAYE Settlement Agreement (PSA)?
A PSA allows employers to make a single annual payment to cover the tax and National Insurance due on minor, irregular, or impracticable expenses or benefits for their employees, simplifying tax administration and ensuring compliance.
Q22 Who can apply for a PAYE Settlement Agreement?
Any UK employer who provides taxable benefits to employees can apply for a PSA. This includes businesses of all sizes, charities, and other organizations.
Q23 Can a PSA include all types of employee benefits?
No, a PSA can only include minor, irregular, or impracticable benefits. It cannot include regular or high-value benefits like cash bonuses, company cars, or medical insurance.
Q24 How does an employer apply for a PAYE Settlement Agreement?
Employers can apply for a PSA online through the HMRC portal or by post. They need to provide details of the benefits to be included, the employer PAYE reference, and business contact details.
Q25 What information is needed to calculate the tax and NICs under a PSA?
Employers need the value of benefits provided, the number of employees who received each benefit, and the employees’ income tax rates to calculate the tax and NICs due.
Q26 What is the deadline for applying for a PSA?
The deadline to apply for a PSA for a given tax year is 6 July following the end of that tax year.
Q27 How often does an employer need to renew a PSA?
A PSA is an enduring agreement and does not need to be renewed annually. However, employers should review it annually to ensure it remains current and covers all relevant benefits.
Q28 What happens if an employer misses the PSA payment deadline?
If the payment is not made by 19 October (22 October for electronic payments) following the tax year, HMRC may impose penalties and interest charges on the outstanding amount.
Q29 Can an employer include benefits covered by an existing exemption in a PSA?
No, including exempt benefits in a PSA means paying unnecessary tax and NICs. Employers should ensure only non-exempt benefits are included.
Q30 How does grossing up work for tax calculations under a PSA?
Grossing up involves increasing the value of the benefit to account for the tax that the employer pays on behalf of the employee, ensuring the tax liability is fully covered.
Q31 What are Class 1B NICs and how are they calculated?
Class 1B NICs are employer-only National Insurance Contributions payable on the value of the benefits and the tax due under a PSA, currently at a rate of 13.8%.
Q32 What steps should an employer take if they need to amend a PSA?
Employers can amend a PSA by contacting HMRC and providing details of the changes needed. HMRC will then issue revised forms for the employer to sign and return.
Q33 Can an employer cancel a PSA?
Yes, either the employer or HMRC can cancel a PSA. The cancellation must be done in writing and will take effect from the start of the following tax year.
Q34 What are the consequences of including ineligible benefits in a PSA?
Including ineligible benefits can lead to incorrect tax and NIC calculations, potential penalties from HMRC, and the need to make additional payments to correct the errors.
Q35 Are there any benefits that are typically excluded from a PSA?
Yes, benefits like cash payments, regular allowances, and high-value items like company cars or private medical insurance cannot be included in a PSA.
Q36 How can employers ensure they accurately track benefits for a PSA?
Employers should maintain detailed records of all benefits provided, including dates, values, and recipients, and review these records regularly to ensure accuracy.
Q37 What is the difference between a PSA and P11D reporting?
A PSA allows for a single annual payment covering certain benefits, while P11D forms are used to report individual benefits for each employee annually, requiring more detailed reporting and administration.
Q38 How does a PSA affect employees' tax liabilities?
Employees do not have to pay tax on the benefits included in a PSA, as the employer covers these costs, providing a tax-efficient benefit to the employees.
Q39 What should an employer do if HMRC disputes the PSA calculations?
If HMRC disputes the calculations, the employer should review their records, correct any errors, and provide additional documentation or clarification as requested by HMRC.
Q40 Can an employer get professional help with setting up and managing a PSA?
Yes, many employers seek assistance from tax professionals or accountants to ensure the PSA is set up correctly, accurately calculated, and compliant with HMRC regulations.
Comments