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Variation of items included in the PSA

Varying the benefits covered in a PSA before 6 July following the end of the tax year should not pose any problems as long as the items are valid (see the PAYE Settlement Agreements (PSA) ― overview guidance note). Variation after the deadline does take place, but is not strictly within the legislation and so is only at HMRC’s discretion. Variation can be applied for by writing to the HMRC office that issued the PSA; there is no standard form.

If HMRC does not agree to the inclusion of additional benefits in a PSA, the default position is that they must be declared on P11Ds. If the P11Ds for that tax year have already been submitted, employers will need to either submit updated P11Ds or consider voluntary disclosure