You must use your PAYE Settlement Agreement (PSA) reference number as a payment reference. Employers are advised not to wait until the payslip arrives before making payments and making their payment based on the values they have calculated and passed on to HMRC for their PSA. PPE payments for fiscal year 2019-20 should be made to the HMRC bank account by October 22, when they are made electronically. Postal payments must be made by October 19. For more information on EPI dates, click here. HMRC will not include items such as cash payments, large services such as company cars, goodwill certificates, etc. HMRC accepts your payment on the day you do so (even on public holidays and weekends) – not on the date it reaches the HMRC account. They may be fined or interest-ed if they do not pay or if their payment is delayed. When paying a PSA payment, employers should ensure that they provide their EPI reference number, as indicated in their EPI confirmation letter. You should not use your PAYE account to make your PSA payment. This is because payments received with the accounts office pay reference are assigned to an employer`s normal PAYE account and, therefore, employers continue to receive warnings for PSA payment, even though it has been paid.
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. A PAYE Settlement Agreement (EPI) allows employers to make a one-time annual payment to HMRC to pay all taxes and NICs incurred for certain expenses and benefits to employees. Should you have a PSA? If you pay PAYE or Class 1 contributions to National Insurance by direct debit, you make a separate debit for your PPE. Employers may be subject to fines or interest or a late penalty if they do not pay or if their payment is delayed. Should payments be delayed due to the current COVID 19 pandemic, HMRC will consider this a reasonable excuse, but employers will have to demonstrate the impact of COVID-19 on payment payments in a timely manner. For more details on reasonable excuses, click here. Check your bank`s transaction limits and processing times before making a payment. You can check your bank credit or home loan statement to confirm that the payment has left your account. Allow 3 business days until your payment reaches HMRC.
If the deadline falls on a weekend or holiday, make sure your payment arrives HMRC on the last business day before it (unless you pay with faster payments). Be sure to pay HM Revenue and Customs (HMRC) on time. You may have to pay penalties and interest if your payment is delayed. You will need the following details to calculate the tax/NIC due: Allow 5 working days to process a direct debit when you put it in place for the first time. It should take 3 working days the next time you use the same banking data. If you pay by mail, you can include a letter in your payment to request a receipt from HMRC. To make a one-time payment, you can set up a debit system via your company`s HMRC (HMRC) online account. This means that every time you pay HMRC by debit, you have to set up a payment. When payment, debtors must provide their unique customer account reference number, which appears on their EPI confirmation letter.