Deadline approaches for PAYE Settlement Agreement

Employers only have until 22 October to pay any tax and National Insurance owed under a PAYE Settlement Agreement.

This payment should be made after the tax year to which the PAYE Settlement Agreement applies. The most common way to pay is online by:

• Bank transfer
• Direct Debit (one-off payment)
• Debit or corporate credit card

You can also pay via mail, but be aware that an earlier deadline of 19 October applies where payment is made via post.

If you do not pay or if your payment is late, you can incur a penalty or be charged interest. The rate of interest charged on late payments continues to increase with inflation, so try to reduce these penalties by paying on time.

Before you make a payment or even where no amount is due, you must also send a PAYE Settlement Agreement calculation to HM Revenue & Customs (HMRC).

Where HMRC has approved your PAYE Settlement Agreement before the start of a tax year, you can include any expenses and benefits contained in the agreement within this calculation.

However, if the tax authority approves it after the start of the tax year, you might need to report some items separately.

Need help with your PAYE Settlement Agreement? Speak to our experienced experts today.