Prior to the 2016 Autumn Statement, the Government consulted on how the process for applying and agreeing pay as you earn settlement agreements (PSAs) could be simplified. The consultation closed on 18 October 2016 with the feedback currently being analysed.
The Government has announced that, following the consultation, it will legislate in Finance Bill 2017 to simply this process, affecting PSAs for the 2018/19 tax year and beyond. It is unclear at present, however, what form the simplifications will take. Employers considering entering into a PSA should be aware of changes to be announced in the 2017 Finance Bill.