If you don`t have a PSA agreement yet, our team of labour tax specialists can help you set up and contact HMRC to make sure the agreement contains everything you want to include now and in the future. 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. 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. As these benefits and expenses were not deducted from tax at the time of payment, the amount of tax payable by agreement must be «taken care of». Some examples help … PAYA compensation agreements (PAYA) are often used by employers to maintain compliance with employee cost and social benefits procedures. By entering into this formal agreement, an employer can pay any tax due on expenses and benefits to workers through an annual submission and payment to the HMRC. If you do not have an PPE in place and miss the deadline to apply for an EPI, but still want to pay taxes in this way, you may be able to make an optional disclosure and billing with HMRC. However, you should be aware that, in certain circumstances, you must pay a fine. Articles contained in an EPI should not be reported separately, for example. B on the payroll or in the employee`s P11D.

Instead of being taxed on the worker through the P11D process, they are taxed through this annual compensation to the employer. Instead of not paying Class 1A through P11D (b), the value of benefits is subject to National Insurance Class 1B (NIC) contributions. The value of the services provided should be taxed under the EPI at the marginal tax rates of each worker concerned. It is therefore important that tax rates for workers residing in each of the UK countries are also taken into account, as deceded governments (currently Scotland and Wales) are able to set the tax rates payable by taxpayers based in those countries. Before applying for an PPE, it`s worth taking a look at your accounts and expenses for the previous year, to determine exactly what you would include on one and to determine all the costs that could actually be exempt, such as service bonuses, annual parties and meals, training and tribal benefits. For THMC experts, tax advice to businesses like this is daily. If you would like to know more or would like to discuss something accounting, call us on 0800 470 4820 or email us info@tfmcentre.co.uk. They must submit an annual calculation of the income tax payable and the Class 1B NIC. HMRC will verify the calculation and confirm the consent if the basic calculation appears to be correct.