A PSA can be used by an employer to settle employees’ tax liabilities where they have been provided with benefits that are “minor” or “infrequent”. It can also be used to pay tax where it would be “impracticable” to allocate specific amounts of value to individuals. If you apply for your PSA prior to the tax year, it can cover anything that's included in the agreement. It's possible to apply after the start of a tax year, but some items may not be able to be included, and will need to go on the P11D form instead.

A new online service is now available to apply for, amend or cancel a PSA. This can be used by employers or an authorised agent, e.g. an accountant. To access the service, you'll need your employer PAYE reference. This is a three-digit number, a forward slash and then a mix of letters and numbers, like 123/AB456. You can find this on letters from HMRC about PAYE.

You also need contact details, including:

• the name of your business
• an address
• your telephone number
• your email address (unless you sign in with a Government Gateway user ID).