Call for Evidence: PAYE Settlement Agreements (PSAs)

HMRC have published a Call for Evidence on how PAYE Settlement Agreements (PSAs) operate in practice.

In the Call for Evidence, HMRC set out how they wish to clarify the purpose and scope of PSAs, including the types of benefits and expenses which should, and should not, be included. HMRC want to know more about how organisations are using PSAs and whether the volume or types of expenses and benefits included has changed in recent years.

A PSA is a voluntary arrangement that allows employers to settle the Income Tax and National Insurance contributions due on certain benefits and expenses on behalf of their employees. It is normally used for benefits which are minor, irregular, or impracticable to report through normal routes. 

HMRC would like to better understand how organisations decide what to include in a PSA and the impacts PSAs have across different types of employers. HMRC also ask questions about managing, operating and agreeing PSAs and how employers approach calculations.

The ATT will be responding to the Call for Evidence and would welcome feedback from members for consideration as part of our response. Please send any comments to [email protected] before 27 July 2026.