PSA6020 - Using the Employer Compliance System (ECS) for PSAs: Creating a new PSA record

There can only be one PSA per tax year and PSA2030 explains that as part of the process of making a PSA you must create a PSA record on ECS for each tax year and record the proposed items detailed on form P626.

Form P626 should be retained where there is an enduring agreement. An enduring agreement is where HMRC allow the item(s) in the signed P626 to be carried foward into the next tax year, until either HMRC or the employer cancel or varies the PSA.

To create a new PSA

  • select the year for which the PSA relates
  • ensure that no PSA already exists, if one does you must consider whether that agreement should be varied, see PSA2060
  • click on the Add button in the PSA screen to go to the Requested Items screen.

You must now record the items which the employer has requested for inclusion in the proposed PSA (as shown on form P626)

  • select the category which relates to the relevant item
  • Entertainment
  • Staff Welfare
  • Incentive awards
  • Benefits
  • Taxable expenses and pecuniary benefits
  • a list of benefits included in that category will appear. From that list select one or more items
  • repeat that action until all the items detailed on form P626 are recorded
  • when you have completed the selections click on the OK button to save the details of the items requested.

ECS will now show that the employer has requested that these items are included in their PSA for that year.

Note: The Cancel button returns you to the PSA screen without saving any of the items selected.