PSA1210 - Overview of PAYE Settlement
Agreements
Employer Successions and PSAs
The general rules for successions shown in Regulation 102 of the
Income Tax (Pay As You Earn) Regulations 2003 do not apply to PSAs.
When you become aware that a succession has taken place you
must
- ascertain what expenses or benefits have
been provided by the old employer up to the date of succession
- agree the amount of tax and Class 1B NICs
payable
- create a charge for the old employer
by
- using SAFE, see
PSA2040, or
- raising a Regulation 110 determination, see
PSA4030.
- notify the successor employer that normal
procedures apply from the date of the succession unless a new PSA
is agreed
- enter into a new PSA if appropriate.
Where the new employer undertakes to settle the old employers
PSA liability and wishes to continue the PSA
- consider raising one charge for the year
of succession in the name of the new employer
- ensure that a new form P626 is drawn up
and signed.
