Robust and comprehensive agreements from HMRC are a central and very important component for any employer looking to be tax compliant in the area of staff benefits and expenses.

Failure to keep agreements up to date, or not to have any in the first place, can be catastrophic to the business when HMRC come to do a PAYE audit and find lots of errors or gaps. Having solid HMRC agreements can also reduce admin for the employer as well as supporting robust internal processes and procedures when providing benefits to staff or reimbursing business expenses.

We believe EVERY employer in the UK should have a comprehensive and up to date P11D Dispensation in place (applied for correctly as mentioned in our blog on this subject) and MANY employers should also have a PAYE Settlement Agreement in place each year. Employers who have neither are just asking for trouble !


What support can Optimum PAYE provide ?

P11D Dispensation
  • Review of current expense processes and procedures
  • Advice on improvement to expense processes and procedures including drafting of any relevant internal documentation, e.g.
    • Expense policy
    • Finance flowcharts for coding expenses
    • Expense claim forms
    • Guidance notes
  • Drafting comprehensive Dispensation request to HMRC (not via P11D(X) !!)
  • Negotiation with HMRC on any "sticking points"
  • Dispensation update service on annual/bi-annual basis

PAYE Settlement Agreements
  • Analysis of expenses and benefits to identify items suitable for a PSA
  • Assistance and advice with coding of payments for PSA purposes and for data capture
  • Submit request for annual PSA to HMRC
  • Negotiation with HMRC on any "sticking points"
  • Gross-up calculations for submission to HMRC or sense-check of client's gross-up calculations and tax split methodology
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