Variation / withdrawal of a PSA and PSA penalties

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:

  • Variation / withdrawal of a PSA and PSA penalties
  • Variation of PSAs
  • PSA penalties

Variation of PSAs

An employer may want to vary a PSA in two ways:

  • to change the items covered
  • to adjust the calculation

In varying the benefits covered in a PAYE settlement agreements (PSA), provided this takes place before the PSA deadline and assuming HMRC agrees, then this should not pose any problems. Variation after the deadline can take place but only at HMRC’s discretion. Variation can be applied for by writing to the HMRC office that issued the PSA as there is no standard form.

If HMRC

More on PAYE settlement agreements: