The Paye Settlement Agreement Filing Deadline: What You Need to Know
If you are an employer in the UK, you may be familiar with the Paye Settlement Agreement (PSA). A PSA is an arrangement between an employer and HM Revenue and Customs (HMRC) to settle the tax liability on certain expenses and benefits provided to employees. This allows the employer to pay the tax due on behalf of their employees, and save them the hassle of having to include these items on their tax returns.
If you have a PSA in place, it is important that you meet the PSA filing deadline. This is the date by which you must submit your PSA to HMRC and pay any tax due. The deadline for filing a PSA is 6 July following the end of the tax year to which it relates. For example, if you have a PSA for the tax year ending 5 April 2021, the filing deadline is 6 July 2021.
It is important to note that if you miss the PSA filing deadline, HMRC may charge you penalties and interest. This is why it is crucial that you make sure you submit your PSA on time.
To file your PSA, you must complete the PSA form (P11D(b)) online or by post. If you choose to file your PSA online, you can do so through HMRC’s online portal. You will need to register for an online account and then follow the prompts to complete and submit your PSA.
If you prefer to file your PSA by post, you can download the PSA form from HMRC’s website and complete it manually. You will then need to send it to HMRC by the PSA filing deadline.
When completing your PSA form, you will need to include details of the expenses and benefits you have provided to your employees. This may include things like company cars, private medical insurance, and work-related travel expenses. You will also need to calculate the tax due on these items and pay it to HMRC.
In conclusion, if you have a PSA in place, it is important that you meet the PSA filing deadline to avoid penalties and interest. You can file your PSA online or by post, and you will need to include details of the expenses and benefits provided to your employees. If you have any questions or concerns about filing your PSA, it is recommended that you seek advice from a qualified accountant or tax advisor.