New digital version of the PSA1 form

HMRC has completed a review of feedback from employers who use PAYE settlement agreements and as a result it has redesigned the PSA1 form.

The department is encouraging all employers to take up the new reporting method saying it ‘is the most efficient way to submit PSA1 and is HMRC’s preferred method of receiving it’.

The new digital format offers 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.

Employers must pay any tax and National Insurance owed under a PAYE settlement agreement by 22 October after the tax year to which the agreement applies (19 October if...