Calculating the tax and NIC due under a PSA

By Tolley in association with Robert Woodward
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The following Employment Tax guidance note by Tolley in association with Robert Woodward provides comprehensive and up to date tax information covering:

  • Calculating the tax and NIC due under a PSA
  • Tax calculation
  • Class 1B NIC
  • Example calculations

The first step in calculating the benefit is to bring together the total costs liable to tax. Sources for these include the following:

  • employee’s expense claim forms especially directors
  • employee’s company credit card bills
  • petty cash
  • termination payments and compromise agreements
  • purchase invoices
  • travelling and subsistence expense codes

More on PAYE settlement agreements: