PAYE Settlement Agreements
How to get a PSA and tell HMRC what you owe
You can apply to get a PAYE Settlement Agreement (PSA) online. If you’re unable to apply online, you can apply by post.
You can get an agent to apply for a PSA on your behalf. You’ll need to give them a signed letter of authority if they do not have authorisation to apply already.
Contact the HM Revenue and Customs (HMRC) employer helpline if you want advice on getting and calculating your PSA.
Apply online
You need your employer PAYE reference. This is a 3 digit number, a forward slash and then a mix of letters and numbers, like 123/AB456. You can find this on letters you’ve got from HMRC about PAYE.
You also need contact details, including:
- the name of your business
- an address
- your telephone number
- your email address (unless you sign in with a Government Gateway user ID)
HMRC will check what’s included in your PSA. They’ll contact you if there are any issues
If your request is authorised, you’ll get a confirmation email or letter. You’ll then be sent your PSA by post.
Apply by post
Write to HMRC Business Tax and Customs describing the expenses and benefits you want the PSA to cover.
PAYE Settlement Agreements
HM Revenue and Customs
BX9 2AN
Once HMRC have agreed on what can be included, they’ll send you 2 draft copies of form P626. Sign and return both copies. HMRC will authorise your request and send back a form - this is your PSA.
Tell HMRC what you owe
Once you have your PSA, you need to tell HMRC what you owe every tax year.
Complete and submit the online form. If you do not, HMRC will calculate the amount. You’ll be charged more if this happens.
You’ll need to report anything that cannot be included in your PSA separately using form P11D. You do not need to send a P11D if you’re paying employees’ expenses and benefits through your payroll.
What happens next
The agreement will continue until either you or HMRC cancels it or you need to change it. You do not need to renew the PSA each tax year.