From 2018-19, HMRC has moved on to a new simplified PSA enduring process. The new procedure replaces the previous procedure by which employers had to apply for an PPE each year and to ensure that the signed agreements were in effect on a specified date. Under the new procedure, it is not necessary for an employer to do anything else after signing a permanent PSA agreement, unless the PSA agreement is to be amended or if hmrc or the customer decides that a PSA is no longer required. 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. Once an PPE has been agreed, employers will not be required to process the values through PAYE, include them on employee P11Ds at the end of the year, and pay Class 1A NICs on them. Although there is no Class 1A NIC liability, employers are required to pay Class 1B NICs when the EPI payment is processed. taxagents.blog.gov.uk/2019/06/25/paye-settlement-agreement-deadline-6-july-2019/ If you already have an PPE, you should check 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. For example, the total cost of providing a $100 PSA gift to a 40% taxpayer is about $190.
If permission is granted after the start of the fiscal year, employers may be required to report certain points separately. If an PPE is approved before April 6, employers must report on a P11D the expenses/benefits provided before the date of the agreement. The agreement must be concluded with HMRC by July 6 after the end of the tax year for which you wish to declare benefits, so that the agreement for fiscal year 2019/20 should have been in effect by July 6, 2020. It is no longer required for annual applications and all applications submitted for the 2018/2019 fiscal year are allocated to subsequent years. You should only contact HMRC if you want to add something to your contract or if you want to revoke your contract with HMRC. 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. If HM Revenue and Customs (HMRC) approves your EPI before the start of a fiscal year, you can include all expenses and benefits contained in the agreement. You must use the P11D form to report expenses and benefits made before the contract date you: Additional complications for 2019/20 with the introduction of Welsh tax rates. HMRC now requires that your psa calculation be shown separately for UK, Scottish and Welsh taxpayers, which adds an additional administrative burden to employers. 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.