In the absence of an extension of the deadlines for concluding a PSA agreement with HMRC, submitting P11D forms or transmitting psa information to HMRC, it is now time to compile the information necessary for the completion of the 2019/2020 returns. PAYE REGLE (PSA) AGREEMENTs offer a simplification measure for employers who are faced with certain taxable benefits. They allow the employer to pay tax on these benefits on behalf of its employees in a single annual payment. After the release of bills in February 2018, we expect some changes to the system from April 6, 2018. Hmrc launched a consultation in August 2016, following which some changes were made to the PSA process. The most important change from 2018/19 was that PPE is now a “permanent agreement”; That is, they should not be renewed every year as long as they are needed or if hmrc does not cancel them. Changes to the benefits listed require a new agreement. To edit the items covered by your PAYE Settlement Agreement (EPI), send details of the changes made to the office that issued them. HM Revenue and Customs (HMRC) sends you a revised P626 that you need to sign and return. HMRC stated in its latest agent update that they would delay the issuance of P626s for 2018-19 until April 2018. We anticipate that existing agreements will become lasting agreements, but we are awaiting confirmation of this point. From April 2018, the annual process for renewing PPE contracts has been simplified, so employers are not required to agree to a PSA with HMRC each year if the categories remain the same.
Under the agreement, the EPI will remain in place until the employer or HMRC terminates or amends it. taxagents.blog.gov.uk/2019/06/25/paye-settlement-agreement-deadline-6-july-2019/ A PSA is an annual agreement with HMRC under which the employer enters into a contractual agreement on the tax and equal opportunities of Class 1B employers on certain small things that HMRC considers taxable, but which the employer does not wish to include in the employee`s P11D performance. Currently, an employer must renew its PSA each year with HMRC. HMRC has introduced bills to abolish this requirement effective April 6, 2018. The proposal calls for an agreement to become a lasting agreement that lasts year after year. CAW opinions on this bill sent to HMRC are available here. 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 updating your current contract is July 6, 2020. It`s also a good time to check if you need to set up an PPE for fiscal year 2020/2021.
It should also be noted that individuals are Scottish (or Welsh) taxpayers for a full tax year. Therefore, if the code prefix changes in the middle of the year because someone has moved, the year-end code prefix should generally be followed, as this should reflect the status of the person for the fiscal year. Employers can check the position with employees whose code changed in the year prior to the closing of the EPI (s) for this fiscal year. An employer can apply for an PPE at any time until July 5 after the end of the tax year on which it relates. However, it is best to apply before the start of the fiscal year to include in the agreement all eligible tax benefits. As part of our comments, we requested that HMRC provide clear guidelines for the production, variation and removal of an PPE, especially as the changes are expected to take effect soon. The deadline for submitting PSA income tax calculations and NIC calculations to HMRC is indicated in the agreement and generally ends on July 31 following the end of the tax.