A PSA system is a practical and flexible solution for managing this type of benefit that must meet one or more of the following requirements: If you do not yet have a PSA agreement, our team of labour tax specialists can help you get in touch with HMRC to ensure that the agreement covers everything you want to include now and in the future. For example, payments, which can normally be included in an EPI count, are staff nights, seminars and internal conferences that include generous, non-commercial items and occasional gifts to staff. To manage their resources, HMRC requests calculations that are submitted annually until a specified date that may differ by agreement, but which is usually July 31 or August 31. It is interesting to note, however, that there is no legal time limit for submitting calculations, so no penalty can be imposed for not presenting your calculation until that date. Once the agreement is in effect for 2018/19, the agreement will continue until the company or HMRC declares it. Previously, the PSA had to be renewed every year. If you do not have an PPE yet and miss this deadline, it is possible to make a voluntary disclosure and a tally of items that you would otherwise have included in an EPI. However, in certain circumstances, HMRC may impose penalties and collect interest on amounts paid in this way. If you feel your company needs to do an annual PPE count, please contact Fiona Wheeler for more information, either by clicking here or by calling 0161 477 2474. An EPI can also help reduce employer management by removing and replacing the requirement to include certain taxable expenses/benefits in employeeS` P11Ds with an annual comparison of HMRC.
If HMRC agrees, they will issue two copies of the agreement (P626) to be signed and returned. HMRC then approves the application and returns a copy to the employer. They must submit an annual calculation of the income tax payable and the Class 1B NIC.