PAYE Settlement Agreement Payment Deadline on 22 Oct

As we approach 22 October, UK employers should be aware of a key tax deadline: the final date to pay any outstanding amounts under a PAYE Settlement Agreement (PSA). If you're paying electronically, this is your cut-off. Missing it could mean interest charges—something easily avoided with timely action.

This deadline follows the earlier 6 July and 31 July milestones, which relate to reporting benefits and submitting PSA calculations. If you've already submitted your PSA1 form and received your charge reference, now’s the time to ensure payment is made. If you haven’t, it’s worth reviewing your position immediately.

What Is a PAYE Settlement Agreement?

A PSA allows employers to settle tax and National Insurance on behalf of their employees for certain benefits and expenses. These are typically minor, irregular, or impractical to assign to individuals—think staff gifts, one-off events, or shared perks. It simplifies reporting and avoids the need to include these items on P11D forms.

Why PSA Matters ?

Without a PSA, employers must report benefits individually via P11D or payroll. This can be time-consuming and may lead to errors or missed declarations. A PSA streamlines the process and ensures compliance, especially for items that don’t fit neatly into standard payroll systems.

PAYE. PSA & P11D Key Dates to Remember

· 6 July: Deadline to apply for a PSA covering the previous tax year.

· 31 July: Deadline to submit PSA calculations.

· 22 October: Final date to pay PSA liabilities electronically.

What Should Employers Do Now?

· Double-check that your PSA calculation was submitted correctly.

· Locate your charge reference and ensure payment is made by 22 October.

· Review any benefits or expenses that may have been missed or misclassified.

· Keep records for at least three years in case of future queries or audits.

Looking Ahead

Understanding the PSA process is part of good tax governance. It’s not just about ticking boxes—it’s about reducing risk, improving accuracy, and saving time. If you’re unsure whether your benefits qualify, or if you’ve missed a deadline, it’s worth seeking expert guidance to avoid penalties and ensure future compliance.

Seek Professional Help

Correct handling of PAYE Settlement Agreement and P11D reporting can save you thousands in tax. Errors may lead to penalties, unexpected liabilities, or missed relief opportunities.

Let Elaga Accountancy help you review your benefit classifications, payment timelines, and reporting obligations to ensure full compliance with PSA rules.

Talk to Elaga Accountancy

We assist with PSA eligibility checks, calculation reviews, and payment coordination—so you meet deadlines like 22 October with confidence.

If you’re unsure whether your benefits qualify for PSA, or if you’ve missed a deadline, we’re here to help you assess your position and take corrective action.

Our experienced team understands the nuances of UK employer tax obligations and can guide you toward accurate, efficient, and compliant outcomes.

***Contact us to learn more.

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