Employee Benefit Reporting: The Role of PAYE Settlement Agreements in UK

A PAYE Settlement Agreement (PSA) is an optional arrangement with HMRC that lets UK employers make one annual payment for certain minor, irregular, or hard-to-value employee benefits. Without a PSA, employers face the risk of misreporting, HMRC penalties, or the burden of managing multiple P11D forms. An alternative is using in-house payroll teams, though they may struggle with edge-case compliance. EOR Services UK simplifies this by handling PSA applications and submissions end-to-end, ensuring accurate classification and timely payments to avoid fines.