Taxable perks
If you provide benefits in kind to your employees but you don’t want them to foot the tax bill, you can settle the tax for them using a PAYE Settlement Agreement (PSA) , subject to conditions (see The next step ).
Registration required
If you want to use a PSA for the first time you must first register it with HMRC and tell it what benefits you want to include. For 2022/23 you must register by 5 July 2023.
New service
Until recently registration and management of a PSA had to be done manually, although HMRC provided online documents to help. The good news is that since 12 April 2023 it can all be done online (see The next step ). You can choose to register and manage it yourself or ask your accountant or advisor to do it for you.
If you want to settle tax and NI liabilities on certain types of benefit you provide to your employees, you can now register and manage this online through HMRC’s new PAYE Settlement Agreement service. The deadline for registration for 2022/23 is 5 July 2023.
The next step
This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit www.indicator-flm.co.uk or call 01233 653500.