Paying PAYE Settlement Agreements (PSAs), Class 1B National Insurance Contributions (NICs) and Class 1A NICs

PSAs: Tax and Class 1B NICs

PSAs are a voluntary agreement, between you and your HMRC office, under which you agree to pay any tax and Class 1B NICs due on certain expenses and benefits in kind you gave to your employees. It is important you provide expenses and benefits details to your HMRC office at the earliest opportunity as payment of 2007-08 PSAs is due by 19 October 2008 or if paying electronically, by 22 October 2008. We charge interest on payments after that date.

Once your HMRC office has finalised the tax and Class 1B NICs payable under a PSA, they will let you know the amount to be paid and provide a unique reference to use when making payment. This is different to the one you would use for your usual monthly or quarterly PAYE and NICs payments.

Class 1A NICs

Class 1A NICs are payable on benefits provided to directors and employees who need to be included on form P11D. Payment of 2007-08 Class 1A NICs are due by 19 July 2008, or if paying electronically, by 22 July 2008. We charge interest on late payment so send yours now if you haven’t already sent it.

When paying 2007-08 Class 1A NICs, you should use the reference shown on the payslip we sent you in May. It is made up of your Accounts Office reference followed by 0813, for the 2007-08 tax year – for example 123PA0001235450813. If you pay electronically you must show 0813 after your Accounts Office reference, so we know the payment relates to 2007-08 Class 1A NICs.