PAYE Settlement Agreement (PSAs)
PSAs are an agreement between an employer and HMRC to settle the Income Tax and National Insurance on some employee benefits. The deadline for applying for a PSA or amending an existing PSA is 5 July 2026, for 2025-26.
P11D Expenses and benefits (P11D)
The 2025-26 P11D and P11D(b) Class 1A National Insurance Contributions (NICs) filing and payment deadline for those employers who do not payroll expenses and benefits is 6 July 2026. Payment must reach HMRC by 19 July 2026 if paying by cheque, or 22 July 2026 if paying electronically.
Reminder: file monthly CIS returns or face late-filing penalties
From April 2026, CIS contractors are legally obliged to file a CIS return every month, including nil returns in months where they have not used a subcontractor.
Voluntary NICs abroad
In the 2025 Budget, the government announced changes to voluntary NICs abroad. From 6 April 2026, for tax years 2026-27 onwards, the option to pay voluntary Class 2 NICs for periods abroad has been removed. New applications to pay voluntary Class 3 NICs for periods abroad will only be accepted where the individual has either 10 years’ continuous UK residency or has paid at least 10 years of NICs.
Your questions answered
What is a PAYE Settlement Agreement (PSA) and when is the deadline?
A PAYE Settlement Agreement (PSA) allows employers to settle Income Tax and National Insurance on certain employee benefits directly with HMRC, rather than through payroll. For the 2025–26 tax year, the deadline to apply for a new PSA or amend an existing one is 5 July 2026.
What are the key P11D and Class 1A NIC deadlines for 2025–26?
Employers who do not payroll benefits must submit P11D and P11D(b) forms by 6 July 2026. Payment of Class 1A National Insurance Contributions is due by:
- 19 July 2026 if paying by cheque
- 22 July 2026 if paying electronically
Missing these deadlines may result in penalties and interest.
What changes affect CIS returns and voluntary NICs from April 2026?
From April 2026, CIS contractors must submit monthly CIS returns, even for months with no subcontractor activity (nil returns), or face late-filing penalties. Additionally, changes to voluntary NICs abroad mean that from 6 April 2026, Class 2 NICs are no longer available for those overseas. New applications for Class 3 NICs will only be accepted if individuals meet stricter eligibility criteria, such as having 10 years of UK residency or NIC contributions.
