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Hmrc Paye Settlement Agreement Helpline

If you`re an employer or employee in the UK, the chances are you`re familiar with HMRC`s Pay As You Earn (PAYE) system. This is the system by which employers deduct income tax and National Insurance contributions from their employees` pay and pass it on to HMRC.

However, there may be times when an employer and employee come to an agreement to settle a tax dispute outside of the usual PAYE system. This is where the HMRC PAYE Settlement Agreement (PSA) comes in.

What is a PSA?

A PSA is an agreement between an employer and HMRC to settle any tax disputes that may arise from expenses or benefits provided to employees. The agreement allows the employer to pay any tax owed on behalf of their employees, rather than the individual employees having to pay tax themselves.

Why use a PSA?

Using a PSA can be beneficial for both employers and employees. For employers, it can simplify the tax process by avoiding the need for individual employees to declare and pay tax on benefits and expenses. It can also save time and money as employers will not need to process multiple tax returns for each individual employee.

For employees, it can make the tax process easier by removing the need to declare and pay tax on benefits and expenses themselves. It can also reduce the risk of errors or omissions on tax returns, which could lead to penalties or fines.

How to set up a PSA?

To set up a PSA, employers must contact HMRC through their helpline or online service and request to enter into an agreement. Employers will need to provide details of the benefits and expenses they wish to include in the agreement, as well as details of any applicable tax rates.

Once a PSA is agreed, employers will need to make a single payment to HMRC to settle any tax owed on behalf of their employees. This payment is known as a PSA settlement.

HMRC Pay Settlement Agreement Helpline

If you have any queries or require assistance with setting up a PSA, you can contact HMRC`s dedicated PSA helpline. The helpline is available from Monday to Friday, 8am to 5pm.

In conclusion, a PSA can be a beneficial way for employers and employees to settle tax disputes relating to benefits and expenses. If you require assistance with setting up a PSA, contact HMRC`s helpline for further information and guidance.