Accountants, SME bosses and bookkeepers should submit PSA forms to HMRC before deadline.
A PAYE Settlement Agreement (PSA) that allows employers to make one annual payment to cover all tax and National Insurance due on small or irregular taxable expenses or benefits for their employees.
The expenses or benefits included in a PSA must be defined as either minor, irregular (tax-free below £8,000) or impracticable (difficult to evaluate the cost/divide between individual employees e.g. shared taxi journeys)
Employers that are required to notify HMRC of the value of items in the PSA must do so using form PSA1. The form for the tax ended 5 April 2015 has recently been published on gov.uk.
Employers that do not have a PSA reference number should contact the office dealing with their application for advice.
Managers in the virtual industries in particular should ensure their employees expenses are dispatched asap
The latest date for electronic payments for a PSA (for the year ended 5 April 2015) to clear into HMRC’s bank account is 22 October 2015. Those paying by cheque must ensure it reaches HMRC’s Accounts Office by 19 October 2015, or face interest and/or late payment penalties.