What Is the PAYE Settlement Agreement Payment Deadline

What Is the PAYE Settlement Agreement Payment Deadline? A PAYE Settlement Agreement (PSA) payment for the 2025/26 tax year must reach HMRC by the 22nd of October 2026 if you pay electronically, or by the 19th of October 2026 if you pay by post. The tax and Class 1B National Insurance contributions (NICs) due under the agreement are paid in one PSA payment, separate from your regular PAYE bill.

What is a PAYE Settlement Agreement?

A PSA is an agreement between an employer and HMRC. It lets the employer make a single annual payment covering the tax and Class 1B NICs due on certain benefits and expenses, instead of declaring them on form P11D and leaving each employee to pay the tax.

Which deadline applies to the 2025/26 PSA payment?

HMRC sets the PSA payment date as the 22nd October following the tax year the agreement applies to, so the payment for 2025/26 falls due in October 2026. The date depends on how you pay.

What do you need to do before you pay?

Tell HMRC the value of the items in your PSA before you pay. You do this online using form PSA1, and HMRC then gives you a payment reference. How much you pay depends on the value of the expenses or benefits you report. If you don’t report the amount, HMRC may calculate it for you and you could be charged more. HMRC also warns that a payment can be allocated to the wrong account if the correct payment details aren’t used.

Which reference do you use to pay a PSA?

Use your 14-character PAYE Settlement Agreement reference, which starts with X. Don’t use your PAYE Accounts Office reference. If you pay PAYE or Class 1 NICs by Direct Debit, make a separate Direct Debit payment for the PSA. If you pay by cheque, write the PSA reference on the back of it.

How long does each PSA payment method take?

The time you need to allow depends on the method. HMRC groups the options as follows.

Cheques sent by post must reach HMRC by 19 October 2026. HMRC no longer accepts PSA payments at the Post Office.

What happens if a PSA payment is late?

You may have to pay penalties and interest if your PSA payment reaches HMRC after the deadline. Paying by the right date for your method avoids both.

Where does BrightPay fit alongside a PSA payment?

BrightPay is Bright’s cloud payroll software for UK accountants, payroll bureaus and employers. It gives employers access to payroll reports and the amounts due to HMRC, so the regular payroll liabilities stay visible. Your PSA payment sits outside that regular payroll bill. It has its own reference and its own payment to HMRC, as set out above.

What should bureaus and accountants check with clients that have a PSA?

1. Confirm the client has submitted form PSA1 and holds the payment reference

2. Agree the payment method and check the time it needs against the 22nd of October deadline (or 19th of October 2026 for post)

3. Check the payment uses the PSA reference and not the PAYE Accounts Office reference

4. If the client pays PAYE by Direct Debit, confirm a separate Direct Debit is in place for the PSA

This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.