Paye Settlement Agreement Payment Deadline – What You Need to Know

As a business owner or a payroll manager, you need to be aware of the deadlines for paying your Paye Settlement Agreement (PSA). A PSA is an agreement between HM Revenue and Customs (HMRC) and an employer that allows the employer to pay all their tax and National Insurance contributions (NICs) in one payment, rather than deducting them from each employee’s pay.

The deadline for paying your PSA depends on the type of payment. Here are the different payment deadlines you need to know:

1. PSA Annual Payment

The PSA annual payment deadline is 22 October following the end of the tax year. For example, the deadline for the tax year ending 5 April 2021 is 22 October 2021. If you miss this deadline, you may incur penalties and interest charges.

2. PSA Quarterly Payment

If you make PSA quarterly payments, you need to pay each quarter by the following deadlines:

– 19 July for the quarter ending 5 July

– 19 October for the quarter ending 5 October

– 19 January for the quarter ending 5 January

– 19 April for the quarter ending 5 April

If you miss any of these deadlines, you may incur penalties and interest charges.

3. PSA One-Off Payment

If you have a one-off PSA payment, you need to pay it by 31 January following the end of the tax year. For example, if you have a one-off PSA payment for the tax year ending 5 April 2021, you need to pay it by 31 January 2022. If you miss this deadline, you may incur penalties and interest charges.

It’s important to note that if you have a PSA and miss any of the payment deadlines, you’ll need to pay any tax and NICs that you should have deducted from your employees’ pay. This will also incur penalties and interest charges.

To avoid missing any payment deadlines, it’s important to keep accurate records of your PSA payments and deadlines. You can also set up reminders or alerts to notify you of upcoming deadlines.

In conclusion, paying your PSA on time is crucial to avoid penalties and interest charges. Make sure you are aware of the payment deadlines and keep accurate records to ensure you don’t miss any payments. If you need any assistance with your PSA, you can always consult with an accountant or a tax advisor.