PART 6PAYE SETTLEMENT AGREEMENTS

Making and effect of PSA

F1HMRC and employer may make PSAI1105

1

F3HMRC and an employer may agree that paragraph (2) applies in respect of income tax on qualifying general earnings of the employer’s employees for a tax year F4and for any subsequent tax years.

2

In relation to qualifying general earnings included in the agreement, the employer is—

a

accountable to F5HMRC in accordance with the terms of the agreement and this Part, and

b

not accountable in accordance with the rest of these Regulations.

3

Such an agreement is referred to as a PAYE settlement agreement (“PSA”).

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A PSA will continue to have effect until cancelled.