HMRC update on new online digital services for PSA submissions and payment
Released 8 August 2017
HMRC have announced that they are simplifying the PAYE Settlement Agreements (PSA) process from 6 April 2018.
PSAs are easements under which employers can settle, in a single payment, their employees’ income tax liabilities for certain benefits and expenses, allowing employers to simplify the reporting and settlement of tax for employee expenses and benefits, and ‘sweep up’ any benefits or expenses which have been overlooked, provided they meet the conditions for inclusion in a PSA.
HMRC plans to:
•provide an online digital service for PSA submissions and payment;
•remove the need for an annual upfront PSA agreement;
•improve and clarify PSA guidance.
The new PSA digital process is being developed in response to the PSA consultation exercise that took place in 2016.
For more details, see Agent Update 61.