Pay As You Earn (PAYE) Settlement Agreement (PSA) is an agreement between HM Revenue and Customs (HMRC) and an employer. This agreement allows the employer to settle the tax and National Insurance (NI) liability on behalf of their employees for certain benefits and expenses. The PSA simplifies the administration of tax and NI contributions for both the employer and the employees.
If you are an employer looking to apply for a PSA, you will need to apply to HMRC. As part of the application process, you will need to provide a secure address for HMRC to send the PSA agreement. This address will typically be different from the address where your business is located.
In order to apply for a PSA, you can write to HMRC at the following address:
PAYE Settlement Agreement Section
National Insurance Contributions and Employers Office
HM Revenue and Customs
BX9 1BX
When writing to HMRC for a PSA application, it`s important to ensure that your letter contains all the necessary details. This includes the name of your organisation, the address where you want the PSA agreement to be sent, and the reason why you are applying for the PSA.
It`s also important to note that there are deadlines for applying for a PSA. If you want to settle your tax and NI liability for the previous tax year, you must apply by 31 May of the following year. For example, if you want to settle your tax and NI liability for the 2020/21 tax year, you must apply by 31 May 2022.
In addition, it`s important to ensure that the information you provide in your PSA application is accurate. This includes the benefits and expenses you want to include in the agreement, as well as the number of employees who are eligible for the PSA.
Overall, if you are an employer looking to simplify your tax and NI contributions for certain benefits and expenses, a PSA can be a useful tool. By providing a secure address for HMRC to send the PSA agreement, you can ensure that the application process goes smoothly and that you receive the agreement in a timely manner.