Draft legislation: Simplification of PAYE Settlement Agreements

In our response, we welcome the simplification introduced by allowing for an enduring PAYE Settlement Agreement (PSA) but stress that adequate guidance needs to be given to ensure that employers understand variation process and in particular what to do if the items initially covered in the enduring PSA change. We also raise concerns that the draft legislation seems to allow HMRC to cancel a PSA without cause and by electronic means (if and when an electronic process is introduced), even if the employer is digitally excluded or otherwise lacks capability to transact digitally.