PAYE Settlement Agreement Cost Calculator
A PAYE Settlement Agreement lets employers pay tax and NIC on certain minor or irregular benefits on behalf of employees. Use this calculator to estimate the grossed-up tax and Class 1B NICs you will owe.
PSA Cost Estimator
About PAYE Settlement Agreements
Under a PSA, the employer pays the tax due on benefits-in-kind that would otherwise need to be included on employees' P11Ds. The tax is "grossed up" because the employer is settling what would have been the employee's own tax liability — so HMRC requires the amount paid to represent a net-of-tax benefit to the employee.
Class 1B NICs at 13.8% are then charged on the aggregate of the benefit value and the grossed-up tax amount. PSAs must be agreed with HMRC by 6 July following the tax year end.