solutions
PSA Optimiser
PAYE settlement agreements (PSA’s) are now a common way for employers to manage the payment of tax and and NIC on minor and irregular benefits. However, few employers realise that the rate of tax and NIC that is being paid in connection with such benefits can be as high as 88%.
Furthermore, practice in relation to items that can be disregarded changes year by year.This can easily lead to the situation where an employer is paying 88% tax and NIC on some items which need not even be included in the PSA.
In some organisations there simply isn’t the resource available to review all of the items which are included in a PSA. We have found situations where account totals from the general ledger are fed directly into a spreadsheet. These totals are grossed up for tax and NIC and a substantial amount of money is paid to HMRC.
Our PSA Optimiser incorporates a methodology, not only for minimizing current PSA payments, but also for ensuring that any of the payments made in the previous 6 years can be recovered. Our approach includes:
- a process review;
- detailed analysis with reference to source documents;
- a technical review to ensure only taxable items have included;
- detailed submission to HMRC;
- discussion and agreement with HMRC where required.
This is a methodology which focuses on the PSA. The employer will still need to address their other ongoing PAYE obligations and if required we can also advise on these. We are confident in our approach. We are able to offer a range of fee alternatives including entirely contingent fees.