HMRC is consulting on secondary legislation to reduce administrative burdens by simplifying the PAYE settlement agreement (PSA) process, by removing the current requirement on employers to renew their PSA annually, and providing for an ‘enduring agreement’
The changes come into effect from 6 April 2018, and this is a technical consultation on changes to the Income Tax (PAYE) Regulations 2003 to enable this.
The new enduring agreement’ will continue to remain in place for subsequent tax years unless varied or withdrawn by the employer or cancelled by HMRC. HMRC says this simplification removes the need for an upfront annual agreement for employers who wish to use this option.
HMRC says these amendments will also ensure that digitisation of the process in the future is possible if it is felt that this would support business, but has ruled out introducing digital working at this point. Nor is it proposing to amend the benefits in kind or expenses which can be covered by a PSA.
The deadline for comments is 21 February.
Draft legislation: Simplification of PAYE Settlement Agreements is here.
Report by Pat Sweet
