A PSA can be entered into at any time before 6 July following the end of the tax year to which it first applies, so any agreements for the 2018-19 tax year should be reached with HMRC by 5 July 2019.
A PAYE Settlement Agreement (PSA) allows you to make one annual payment to cover all the tax and National Insurance due on minor, irregular or impracticable expenses or benefits for your employees. If you get a PSA for these items, you will not need to:
put them through your payroll to work out tax and National Insurance
include them in your end-of-year P11D forms
pay Class 1A National Insurance on them at the end of the tax year (you pay Class 1B National Insurance as part of your PSA instead)
Once a PSA has been entered into, the agreement is enduring.
The final due date for payments is 19 October (or 22 October where paid by an approved electronic payment method) following the year to which the PSA applies, but payments of tax and NICs can be made at any time after the agreement is signed.
For further information on PSAs visit gov.uk.