PSA payment deadline: employers must act by 22 October 2026
Published 21 October 2026. In today’s Employer Bulletin, HMRC reminds employers that electronic PAYE Settlement Agreement payments for the year ended 5 April 2026 must reach its account by 22 October 2026. If your business has an outstanding PSA bill, check it today.
Who does this deadline affect?
A PSA lets an employer settle tax and National Insurance annually on agreed employee expenses or benefits that are minor, irregular or difficult to allocate. These items attract Class 1B contributions through the agreement, rather than the normal Class 1A treatment. This reminder concerns employers with a PSA liability; it is not a general deadline for every business.
A PSA cannot simply absorb all staff costs: wages, cash bonuses and high-value benefits such as company cars are excluded. Check that your calculation matches the items agreed with HMRC.
Choose a payment method that can arrive in time
The postal deadline was 19 October. For electronic payments, allow for processing: existing Direct Debits need three working days, and a first Direct Debit needs five. Starting a slow payment on 21 October is not the same as paying on time. Late payment can lead to interest and penalties.
Use the PSA reference
Use the 14-character PSA reference beginning with X, not your normal PAYE Accounts Office reference. Faster Payments usually arrive the same or next day; Bacs usually takes three working days. Check your bank’s limits and cut-off times. If you cannot find the reference, contact HMRC’s employer helpline.
A quick check before authorising payment
ZipTax recommends checking the tax year, agreed calculation, outstanding balance, reference and chosen payment method together. Keep the payment confirmation with the supporting calculation. If someone else approves your company’s bank payments, make sure the instruction is not still waiting in an approval queue.
Need help reviewing your PSA?
Contact ZipTax to discuss your employer tax records and PSA calculation. Have your agreement, calculation and HMRC correspondence ready so the review can focus on the outstanding issue. Information checked on 21 October 2026.
