The PSA1 indicates to HMRC the value of items included in the agreed PSA. HMRC have updated their guidance ahead of the 2025/26 payment deadline.
Employers and / or agents must complete the PSA1 to report benefits or expenses included in the agreed PAYE Settlement Agreement. This must detail the calculation and consider the different Income Tax rates that apply to Scottish Taxpayers.
On 06 October 2026, HMRC updated their guidance with the following line:
You must do this even if you did not provide any benefits or expenses to employees (this is sometimes called submitting a ‘nil return’)
For Bookkeepers
The deadline for applying for a 2025/26 PSA was 05 July, however, the tax and Class 1B National Insurance payment deadline is 19 / 22 October 2026.
As HMRC’s other guidance indicates, it is important the employer or agent calculates the value so HMRC know the value of the items in the PSA and the payment that will be made. If the PSA1 is not completed, HMRC will not know the value of the payment and will make their own calculation.
Note there is only an obligation for the nil return if there are items in the agreed PSA with a zero value. There is not an obligation to complete the PSA1 with values that are not in the agreed PSA.