Taxpayers who have a PAYE Settlement Agreement (PSA) with HMRC are reminded to make sure they settle their 2012-13 PSA payments of tax and Class 1B NICs by 19 October (for cheque payments) or 22 October (for electronic payments) or face a late payment penalty.

Note that it is important to use the right payment reference when making a payment (ie, the reference number on the PSA payslip, beginning with 'X', and not the PAYE Accounts Office reference).

A PSA is a flexible scheme that can be used to settle any PAYE tax and NICs due to HMRC on the following expenses and benefits: (i) minor items, (ii) irregular items and (iii) items where it is impractical to operate PAYE on or to value for P9D/P11D purposes.

If HMRC agrees to include an expense or benefit in a PSA, taxpayers will just need to settle the tax and NICs due on the items covered by a PSA with a single payment that includes both the tax due and the Class 1B NICs.

The tax and Class 1B NICs owed under a PSA are to be paid to HMRC no later than 19 October (22 October for electronic payments) following the tax year to which the PSA relates.

More details are available from HMRC