PAYE Settlement Agreements (PSA) allow employers to reduce their payroll admin by settling the tax and NICs on minor, irregular or impracticable expenses or benefits on behalf of their employees in a single, annual payment. 

HMRC are reminding employees that the deadline for applying for a PSA, or making amendments to an existing one, is 5 July following the end of the tax year.  That means that the deadline for tax year 2021-22 is 5 July 2022.

HMRC are also highlighting that:

• The easement covering inclusion of COVID-19 items in PAYE Settlement Agreements expired on 31 August 2021. 
• If you wish to add additional items to an existing PSA you will receive an appendix to your assisting agreement, and not a new agreement.

More information on PSAs, including how to apply, can be found on GOV.UK.