PSA1 forms are going digital after HMRC recently completed a review of customer feedback from employers who use PAYE Settlement Agreements.
Acting on that feedback HMRC has redesigned the PSA1 form to improve the service and is keen to make employers file using the digital form. The new form is available from PAYE Settlement Agreement (PSA1).
As part of its digital drive, HMRC is encouraging all employers to take up the new reporting method. ‘This is the most efficient way to submit PSA1 and is HMRC’s preferred method of receiving it,’ HMRC said.
The new digital format offers some benefits for employers, including easy, standardised reporting, improved accuracy, speedier processing times and fewer resulting queries.
If using the paper version, employers may have to complete more than one PSA1 depending on where employees live. The new digital PSA1 will allow employers to submit one form for all employees regardless of their location.
A PAYE Settlement Agreement (PSA) enables employers to make one annual tax and National Insurance payment to cover small, taxable employee expenses.
Employers must pay any tax and National Insurance owed under a PAYE Settlement Agreement by 22 October after the tax year to which the PAYE Settlement Agreement applies (19 October if paying by post).
There are penalties for late payment and interest can be charged on outstanding sums.
The PAYE Settlement Agreement PSA1 calculation form has to be completed even if an employer has no tax due to pay.
If HMRC approves your PAYE Settlement Agreement before the start of a tax year, you can include any expenses and benefits contained in the agreement. If HMRC approves it after the start of the tax year, it might be necessary to report some items separately.
If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We, at Naail & Co, are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.
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