Using PSA1 form for paying your PAYE settlement agreement
A PAYE Settlement Agreement (PSA) allows you to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for your employees.
To pay your PSA you need to use the PSA reference number, for example, XA123456789012. If you do not have your PSA reference number, please contact the office dealing with your application for advice.
Do not use your PAYE Accounts Office reference (123PA12345678) to make your PSA payment, because payments received with your PAYE Accounts Office reference are allocated to your normal PAYE account and you will continue to receive reminders for the PSA even though you have paid.
HMRC is encouraging the correct method of reporting which is form PSA1.
The online PSA1 form offers several benefits for employers:
- Standardised reporting
- Improved accuracy
- Speedier processing times and fewer queries