Maintenance payments are payments made by the taxable person to his or her former or separated spouse for the subsistence of that former spouse or children. To receive tax relief for alimony, one of the couples must have been born before April 5, 1935 and payments must be made in force You must always use a payment reference, even if HMRC has not sent you a confirmation letter. Fortunately, you will find a payment reference in HMRC`s letter attached to your countersigned P626 – the letter that entered into the agreement. Although it is not specific to each fiscal year, it is unique for each employer and, therefore, HMRC has confirmed to us that it can be used in this situation. It is in the format XX0000123456789. Once they have agreed on what can be registered, they send you 2 copies of Form P626. Sign and return both copies. HMRC will authorize your application and send a form – this is your PSA. From 2018-19, HMRC switched to a new PSA simplified hardening process. The new procedure replaces the previous procedure, where employers had to apply for PPE each year and ensure that signed agreements were in force until a given date.

Under the new process, an employer, once it has signed a permanent PSA agreement, must not do otherwise unless the PSA agreement needs to be amended or HMRC or the customer decides that PPE is no longer needed. Employers sometimes offer benefits to their employees and wish to pay tax on behalf of workers. A PAYE Transaction Agreement (PPE) is an annual voluntary agreement that allows them to do so….