Guidance required on simplification of PSAs

The proposed simplification for PAYE settlement agreements (PSAs) is welcome but clear guidance on the changes is vital says the Association of Taxation Technicians.

Currently an employer needs to renew their PSA with HMRC each year. But from April draft legislation will introduce an enduring agreement which should roll on from year to year.

Yvette Nunn co-chair of ATT’s technical steering group said: ‘We welcome the creation of an enduring agreement so that employers do not need to renew their PSAs annually. This is a sensible measure which we hope will encourage more employers to use this route to deal with eligible benefits in kind.

‘We would like to see more detail on how the changes will work in practice. We call on HMRC to issue clear guidance as soon as possible on the process for application variation and cessation of enduring agreements. Employers...