PSA1210 - Overview of PAYE Settlement Agreements

»Ê¹ÚÌåÓýapp general rules for successions shown in Regulation 102 of the Income Tax (Pay As YouEarn) Regulations 2003 do not apply to PSAs.

When you become aware that a succession has taken place you must

  • ascertain what expenses or benefits have been provided by the old employer up to the date of succession
  • agree the amount of tax and Class 1B NICs payable
  • create a charge for the old employer by
  • using SAFE, see PSA2040, or
  • raising a Regulation 110 determination, see PSA4030.
  • notify the successor employer that normal procedures apply from the date of the succession unless a new PSA is agreed
  • enter into a new PSA if appropriate.

Where the new employer undertakes to settle the old employers PSA liability and wishesto continue the PSA

  • consider raising one charge for the year of succession in the name of the new employer
  • ensure that a new form P626 is drawn up and signed.