PAYE Settlement Agreement

One of our main areas of Employee Taxes is to assist corporate clients in preparing annual computations of PSA Tax and NIC liability in respect of benefits and expenses on which the company as employer agrees to pay tax on behalf of employees.

We will agree in advance with HMRC the scope of benefits etc to include in such a settlement instead of reporting them via End of Year payroll returns or on forms P11D on behalf of employees.

Items to be included may consist of:

• Minor items such as taxi fares, small gifts to employees, incidental business travel costs
• Expenses paid or benefits provided on an irregular basis, such as under employer-run incentive scheme awards, relocation packages for employees, in regard to use of employer-provided accommodation, or
• Items on which it is agreed impracticable to apply PAYE, or identify precisely, such as employer events (Christmas parties) and other entertainment venues

Having prepared and submitted computations of Tax and NIC liability under a PSA we will agree liability with HMRC and advise clients when and how to settle liability on a timely basis.