If you would like more information on this issue or understand how Smith Cooper can help you apply and send a PSA to HMRC, please contact Laura Parr or Mick Verney in our Employment Tax Team. The deadline for applications for an PPE is 5 July following the end of the fiscal year. Therefore, if you do not have an PPE yet, you must claim benefits and expenses for the 2018/2019 fiscal year by July 5, 2019. If you have workers domiciled in Scotland or Wales (which you can identify using their PAYE codes in your pay settlement system), you must apply the tax rates applicable to the benefits assigned to them. For 2019/20, tax rates in Wales remain consistent with those in England and Northern Ireland, but Scottish tax rates are different, so you should be careful to ensure that you are applying tax rates correctly in your calculation. PAYA compensation agreements (PAYA) are often used by employers to maintain compliance with employee cost and social benefits procedures. By entering into this formal agreement, an employer can pay any tax due on expenses and benefits to workers through an annual submission and payment to the HMRC. taxagents.blog.gov.uk/2019/06/25/paye-settlement-agreement-deadline-6-july-2019/ The contract will continue until you or HMRC have to terminate or amend it. You don`t need to renew the PSA every tax year. If you do not yet have an PPE and have granted your employees benefits to report during the Covid 19 freeze, which should not be subject to tax, you should now apply for an EPI from HMRC. If the benefits to be reported were granted to workers before April 6, 2020, you must have agreed a PSA with HMRC for fiscal year 2019/20 by July 6, 2020. If you already have an PPE, you should check to see if changes are needed for fiscal year 2019/20. If you do not currently have an PPE, you must determine whether you should enter an PPE for fiscal year 2019/2020.

The deadline for signing a 2019/20 contract and the update of your current contract is July 6, 2020.

Be Sociable, Share!