The UK Rules
What's Included

What to Include in Your HMRC PSA

PAYE Settlement Agreements (PSAs) can include standard types of minor, irregular, and impracticable 'benefits in kind' and expenses. Check what can be included in a PAYE Settlement Agreement - and what cannot!

Items must either be minor, irregular, or impracticable to count for a PAYE Settlement Agreement. So, what's included in a PSA?

Minor Benefits and Expenses

Note: Pre-set monetary limits do not define the valuation of 'minor’' items. Use objective judgement to decide whether it is minor in value. The treatment of tax on trivial benefits means they do not get included in a PSA.

Irregular Benefits and Expenses

Items not paid for at regular intervals throughout a tax year (e.g. weekly or monthly) may qualify for your PAYE Settlement Agreement as irregular inclusions.

As a rule, they would be expenses or benefits that employees have no contractual right to receive. Some common examples of irregular expenses and benefits would include the cost to:

Note: Consider the nature of the item and the usual frequency of paying for it across the workforce to determine its qualification.

Impracticable Expenses and Benefits

Impracticable expenses and benefits tend to be items that are difficult to share between the workforce. Finding it hard to place a true value on an impracticable item may also qualify it for a PSA, such as:

Note: The 'impracticability' of these items tends to make them difficult for employers to operate PAYE on them. Their complexity also makes them hard to apportion a share of the benefits between employees.

Items a PSA Does Not Include

PAYE Settlement Agreements do not include employee salary, wages, or other high-value benefits (e.g. company cars). Neither do they include cash payments relating to:

Extra restrictions on what you can include in a PSA may apply on deadlines and payment if the application starts after the beginning of the tax year.


HMRC PSA Explained | Check how PSAs allow annual payments for some types of employee expenses.

How to Get a PSA | The details you must include when you write to Business Tax Operations at HMRC.

Note: Employers need to report most expenses and benefits they provide to employees. Check out the complete A to Z list of expenses and benefits to confirm whether you must pay tax and National Insurance on them.

Standard Items Included in PAYE Settlement Agreements