Simplifying the PAYE Settlement Agreement (PSA) process

HMRC have issued a consultation document which sets out proposals to reform the PAYE Settlement Agreement (PSA) process.

make it simpler for both employers and HMRC to administer PSAs provide greater clarity about what can and cannot be included in a PSA

Responses are welcomed from anyone with an interest in this consultation, although the nature of the topic means that it may have more relevance for employers and their professional advisers rather than individuals.

The consultation document can be found here.

The closing date for the consultation is 18 October 2016

Comment

The government is not proposing to widen the scope of PSAs. However, they would like to know how the process can be made simpler and how the guidance can be strengthened to provide clarity for both employers and HMRC.

This will disappoint some employers who believe that the current regime is too restrictive. However, we do encourage employers to leave their comments even if it does stray into the area of what the government are not proposing to do. It would, at least, let the government know what employers are thinking and it may get on the agenda in the future.