Negotiating a settlement agreement can be an intimidating experience, especially if you’re unsure of the legal protocols that must be adhered to. But with a better understanding of how these settlements are calculated, it doesn’t have to be so daunting. If you’re looking for guidance on how a settlement agreement is determined and want to learn more about the forms used in achieving this goal, then this blog post is for you. Here we will discuss the different elements involved in calculating settlement agreements along with introducing you to our Settlement Agreement Calculation Form – designed to make your negotiation process quick and hassle-free.
| Question | Answer |
|---|---|
| Form Name | Settlement Agreement Calculation Form |
| Form Length | 1 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 15 sec |
| Other names | hmrc psa1, settlement agreement calculator, paye settlement agreement calculator, psa1 form 2020 21 |
Employer name
PAYE Settlement Agreement calculation Tax year 2 0
PAYE reference
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You can use this form to tell us the value of the items included in your PAYE Settlement Agreement. Please tell us as early as possible so that we have time to check your figures and agree the amount of tax and National Insurance contributions (NICs) due.
You must pay the total amount due no later than 19 October (22 October if you pay by electronic means) following the tax year to which this agreement relates. You may be charged interest and/or penalties if your payment is late. If there is a delay in agreeing the amount due under this agreement, it would be to your advantage to make a payment on account, on or before 19 October. Please contact your HM Revenue & Customs office for details of how to make a payment on account. This avoids any potential problems due to last minute notifications.
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Tax band split |
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Type of benefit or |
Total cost of |
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Value of |
Grossed up |
Value of |
Grossed up |
Value of |
Grossed up |
Total tax due = |
Total Class 1B |
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expense paid |
benefit or |
benefit |
tax = B x 20% |
benefit |
tax = D x 40% |
benefit |
tax = F x 45% |
C + E + G |
NICs due |
(including VAT) |
expense paid |
provided to |
x 100/80 |
provided to |
x 100/60 |
provided to |
x 100/55 |
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20% taxpayers |
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40% taxpayers |
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45% taxpayers |
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(A + H) x 13.8% |
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A |
B |
C |
D |
E |
F |
G |
H |
I |
1
2
3
4
5
6
7
8
9
10
11
12
Totals (£)
PSA1 |
HMRC 12/13 |