2012-13 PAYE Settlement Agreements payment reminder

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HMRC are reminding taxpayers who have a PAYE Settlement Agreement (PSA) with HMRC to make sure they settle their 2012-13 PSA payments of tax and Class 1B NICs by 19 October (for cheque payments) or 22 October (for electronic payments) or face a late payment penalty, reports Harris & Co chartered accountants Northampton.

HMRC are also reminding taxpayers to use the right payment reference when making a payment (i.e. the reference number on the PSA payslip, beginning with "X", and not the PAYE Accounts Office reference).

A PSA is a flexible scheme that can be used to settle any PAYE tax and NICs due to HMRC on the following expenses and benefits: (i) minor items,(ii) irregular items and (iii) items where it is impractical to operate PAYE on or to value for P9D/P11D purposes. If HMRC agree to include an expense or benefit in a PSA, taxpayers will just need to settle the tax and NICs due on the items covered by a PSA with a single payment that includes both the tax due and the Class 1B NICs.

The tax and Class 1B NICs owed under a PSA are to be paid to HMRC no later than 19 October (22 October for electronic payments) following the tax year to which the PSA relates.

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