“Compensation” deadline for the previous fiscal year to reach HMRC. There is no legal deadline for submitting the tax and NIC calculations due under a PSA to HMRC. You must pay the tax due under an PPE and the NIC until October 22 after the end of the tax year (or October 19 if you do not pay electronically). If you miss this deadline, interest and penalties can be calculated. If HM Revenue and Customs (HMRC) approves your EPI before the start of a fiscal year, you can include all expenses and benefits contained in the agreement. HMRC will not include items such as cash payments, large services such as company cars, goodwill certificates, etc. The PAYE Settlement Agreement (EPI) allows employers to make an annual payment to cover tax and national insurance on a gross basis for gross expenses or benefits for small, irregular or unachievable expenses or benefits. The deadline for applications for an PPE is 5 July following the end of the fiscal year. Therefore, if you do not have an PPE yet, you must claim benefits and expenses for the 2018/2019 fiscal year by July 5, 2019. If the deadline falls on a weekend or holiday, make sure your payment arrives HMRC on the last business day before it (unless you pay with faster payments). For example, the total cost of providing a $100 PSA gift to a 40% taxpayer is about $190. You must use the P11D form to report expenses and benefits made before the contract date: from April 2018, the annual contract renewal process for PSAs has been simplified, so employers are not required to agree on an PPE with HMRC each year if the categories remain the same.
Under the agreement, the EPI will remain in place until the employer or HMRC terminates or amends it. The agreement must be concluded with HMRC by July 6 after the end of the tax year for which you wish to declare benefits, so that the agreement for fiscal year 2019/20 should have been in effect by July 6, 2020. It is no longer required for annual applications and all applications submitted for the 2018/2019 fiscal year are allocated to subsequent years. You should only contact HMRC if you want to add something to your contract or if you want to revoke your contract with HMRC. You may be fined or fined if you do not pay or if your payment is delayed. Corporate tax payment date for years ending December 31, nine months earlier. Employers may be subject to fines or interest or a late penalty if they do not pay or if their payment is delayed. Should payments be delayed due to the current COVID 19 pandemic, HMRC will consider this a reasonable excuse, but employers will have to demonstrate the impact of COVID-19 on payment payments in a timely manner. For more details on reasonable excuses, click here.
Taxpayers should not wait to receive their salary confirmation from HMRC. All electronic payments related to the EPI must be transferred to HMRC`s bank account by October 22, 2020. Last day for the presentation of PAYE Settlement Agreement (PSA) figures to HMRC, if you want them to guarantee that they will notify you of the tax/NIC in time to meet the payment deadline on October 19th. Other complications have emerged for 2019/20 with the introduction of Welsh tax rates. HMRC now requires that your psa calculation be shown separately for UK, Scottish and Welsh taxpayers, which adds an additional administrative burden to employers. taxagents.blog.gov.uk/2019/06/25/paye-settlement-agreement-deadline-6-july-2019/ If your client does not have his PSA reference number or is unsure what action to take, he should contact the PSA team on 0300 322 7077. Employers may be fined or late interest if they do not pay or if their payment is delayed.