Skip to content
Solved

PSA1200 | Overview of PAYE Settlement Agreements: Employer Cessations and PSAs

From HM Revenue & Customs · PAYE Settlement Agreements

Where a PSA exists and the employer

  • ceases to trade, or

  • is subject to insolvency proceedings

You must agree a PSA charge (follow PSA2040) up to the date of cessation.

If, exceptionally, you cannot reach agreement

  • make a determination under Regulation 110. See PSA4030

In cases where the employer is subject to insolvency proceedings and employees are retained. Notify the Insolvency Practitioner that

  • the PSA applies only up to the relevant date

  • normal procedures apply from the relevant date, unless a new PSA is entered into, and

  • the same considerations apply if the business is subsequently sold as a going concern.

Where you are unable to contact the employer (excluding insolvency cases)

  • establish the circumstances of the case, for example contact the Debt Technical Office to see if they are pursuing payments, returns, etc, to determine whether it is worthwhile taking further action.