Are you an employer or individual who wants to settle your PAYE tax bill with HM Revenue and Customs (HMRC)? If so, you may need to contact HMRC about a PAYE settlement agreement.

A PAYE settlement agreement (PSA) is an agreement between you and HMRC that allows you to settle your tax and National Insurance liabilities on certain expenses and benefits for your employees. This can simplify your tax affairs and reduce administrative costs.

Here is a quick guide to contacting HMRC about a PAYE settlement agreement.

1. Check if you are eligible for a PSA

Before contacting HMRC, you should check if you are eligible for a PAYE settlement agreement. The PSA is available to employers who provide benefits to their employees or incur expenses on their behalf. These expenses or benefits may be taxable, but the PSA allows you to settle them as a single payment, without having to report them on individual employees` P11Ds or pay tax and National Insurance for each benefit.

You can apply for a PSA if you meet the following criteria:

- You have an ongoing need to process expenses and benefits for your employees

- The total value of the benefits or expenses is below a certain threshold (currently £50,000 per tax year)

- You have a good compliance record with HMRC

- You agree to settle the liabilities for all relevant expenses and benefits, including those that are not taxable.

2. Gather the necessary information

To apply for a PSA, you will need to provide HMRC with some information about your expenses and benefits. This may include:

- The type of expenses and benefits you provide to your employees

- The total value of the expenses and benefits

- The number of employees who receive the expenses and benefits

- The pay periods and tax years covered by the PSA

- Your employer reference number (ERN) and accounts office reference (AOR).

You may also need to provide additional information or documentation, such as copies of your expenses policy or details of how you calculate the value of the benefits.

3. Contact HMRC

Once you have gathered the necessary information, you can contact HMRC to request a PSA. You can do this by phone, email or letter.

The contact details for HMRC vary depending on your circumstances. If you are an employer, you should contact the Employers` Helpline on 0300 200 3200. If you are an individual, you should contact the Self Assessment Helpline on 0300 200 3310.

When you contact HMRC, you should provide them with the information you have gathered and explain why you want to apply for a PSA. HMRC will then assess your eligibility and provide you with further instructions on how to proceed.

4. Settle your liabilities

If HMRC accepts your application for a PSA, you will need to settle your liabilities by the agreed deadline. This will usually be 22 October following the end of the tax year in which the expenses and benefits were provided.

You can settle your liabilities by making a single payment to HMRC, using the reference number provided by HMRC. You will also need to report the PSA on your end of year payroll report (P35).

In conclusion, contacting HMRC about a PAYE settlement agreement can be a straightforward process if you have the necessary information and meet the eligibility criteria. By settling your liabilities through a PSA, you can simplify your tax affairs and reduce administrative costs. If you have any questions or concerns, you should contact HMRC for further guidance.