Payroll Legislation

How to Pay Your PAYE Settlement Agreement

Legislation

How to Pay Your PAYE Settlement Agreement

Due Date

22 October 2021

Summary

A PAYE Settlement Agreement (PSA) enables employers to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for employees.

Any electronic payments for a PAYE Settlement Agreement for the tax year ending 5 April 2021 must clear into the HMRC bank account by 22 October 2021. Late payments may incur interest, a late payment penalty or both.

To pay your PAYE Settlement Agreement you will need to use the PSA reference number from the payslip HMRC sent you. For example, XA123456789012.

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