PSA1200 - Overview of PAYE Settlement Agreements

Employer Cessations and PSAs

Where a PSA exists and the employer

• ceases to trade, or
• is subject to insolvency proceedings

You must agree a PSA charge (follow PSA2040) up to the date of cessation.

If, exceptionally, you cannot reach agreement

• make a determination under Regulation 110. See PSA4030

In cases where the employer is subject to insolvency proceedings and employees are retained. Notify the Insolvency Practitioner that

• the PSA applies only up to the relevant date
• normal procedures apply from the relevant date, unless a new PSA is entered into, and
• the same considerations apply if the business is subsequently sold as a going concern.