HMRC launched a new service for employers and their agents to apply for a PAYE settlement agreement (PSA) from 6 April 2023. The project was very fast-moving for many reasons, including a go-live date in line with the PSA 2022/23 reporting deadline.

HMRC has not mandated use of its new gForm P626, so the previous print and post option remains available. However, employers and agents are encouraged to use the new digital service.

ICAEW and other representative bodies flagged that at any one time, only one member of staff can use a firm’s credentials to submit these forms. HMRC has improved the process to allow more than one person in a firm to use the same credentials at the same time.

To complete the application for an agreement, employers or agents may wish to use the gForm via email submission or the government gateway. Emails will follow the normal HMRC routine using its secure processes of one-time codes. When confirming agent authorisation for completing the gForm, the user will be asked to confirm that they have the authority. They will need to upload a letter of authority (64-8) in relation to the PAYE scheme, customer, tax duty, etc. Security will be completed by HMRC when it reviews the agreement application. 

The data input on the gForm can be printed under the same conditions as other gForms; the option to print is available at the summary stages. It is important to note that users should print before submitting, as the option to print is lost following submission.

HMRC will include an article on the new PSA process in the next edition of Employer Bulletin.