PART 6PAYE SETTLEMENT AGREEMENTS

Making and effect of PSA

Inland Revenue and employer may make PSAI1105

1

The Inland Revenue and an employer may agree that paragraph (2) applies in respect of income tax on qualifying general earnings of the employer’s employees for a tax year.

2

In relation to qualifying general earnings included in the agreement, the employer is—

a

accountable to the Board of Inland Revenue in accordance with the terms of the agreement and this Part, and

b

not accountable in accordance with the rest of these Regulations.

3

Such an agreement is referred to as a PAYE settlement agreement (“PSA”).