A PAYE Settlement Agreement is an arrangement that allows employers to pay the tax and National Insurance contributions (NICs) on certain benefits or expenses provided to employees, rather than passing the tax liability onto the employees themselves. PSAs are often used for minor, irregular, or impractical-to-value perks.
« Back to Glossary Index
Tax Guide UK Editorial Team: Our team of financial writers, tax researchers, and editors is dedicated to making UK tax easier to understand — and easier to manage. Every article is thoroughly researched, regularly updated, and written in plain English to help you stay compliant and confident.View Author posts