Currently, each year, employers must apply in writing for an PPE that often contains the same points. Under the agreement, employers must calculate the amount of income tax and NIC for taxable benefits and submit their calculations for the HMRC agreement. Problems arise when the employer does not request PPE, the NIC treatment is poorly applied, or the HMRC does not accept the calculations. To simplify the process, the government has issued a consultation paper. The contract will continue until you or HMRC have to terminate or amend it. You don`t need to renew the PSA every tax year. 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. To apply for an EPI, you must write to HMRC (details below) with a description of the specific expenses and benefits you have made available to employees working for your SME who you believe can be covered. HMRC then confirms or refuses each exit and any benefit and sends you your PSA form (P626). 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.
If you are a small to medium-sized entrepreneur (SME) with a number of employees, you may want to consider applying for a PAYE Settlement Agreement (EPI) to simplify your NATIONAL Insurance Contributions (NIC) contributions that are paid to your employees for irregular and impractical small expenses or benefits. 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. 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. An EPI can also help reduce employer management by removing and replacing the requirement to include certain taxable expenses/benefits in employeeS` P11Ds with an annual comparison of HMRC.