PSA.I

PAYE Settlement Agreements: getting the data right for 2025/26

Fri, 01 May 2026 00:00:00 +0000

You could be forgiven for thinking PAYE Settlement Agreements are well-trodden ground for in-house tax teams. After all, the rules have been around for decades, the deadlines don’t move, and most employers run through the cycle every year. So why does the work seem to get harder, not easier?

A PSA lets an employer settle, in a single annual payment to HMRC, the income tax and Class 1B NIC due on certain expenses and benefits provided to employees. It’s used for items that are minor, irregular, or impractical to put through payroll or the P11D – staff entertaining, small gifts, working meals and the like. The 2025/26 tax year is closed, we’re in the midst of P11Ds and the PSA window is coming fast.

AI in tax: what PSA.I has taught us

Fri, 10 Apr 2026 00:00:00 +0000

As you’ve probably noticed by now, we have been building PSA.I, an AI tool for the data side of the PAYE Settlement Agreement process, for a while. Over roughly the same period I completed two Imperial College Business School programmes, the Emerging CTO Programme and Agentic AI in business, and used employment tax as the worked example throughout both, which the other participants bore with good grace (and I gracefully bored them!).

About

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We are founded by three ex-Big 4 employment tax specialists with over 60 years’ combined experience in benefits and expenses and the technology around it. Between us we have run PSA, P11D and expenses compliance for large and small employers across the board, and have seen how much of a modern company’s compliance process now depends on getting the technology right.

AI is changing how tax teams and advisers operate, and employment tax is not immune to this change. PSA.I is our answer for the PAYE Settlement Agreement.

Advisers

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Each engagement runs in isolation, with its own data, category library and learning history. Confirmed patterns for one client do not bleed into another, and dashboarding monitors progress across the book.

PSA.I gives a professional services team one consistent reviewer workflow for every PSA it prepares, from a single client to a full portfolio.

How it works

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PSA.I takes expense data in whatever shape it arrives, suggests a PSA category for every line with a confidence score, puts the reviewer in control of every final decision, and produces a grossed-up PSA calculation, including Class 1B NIC.

In-house teams

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PSA preparation is often slow, manual and time-sensitive. Expense files arrive in different formats, descriptions are inconsistent, and the tax treatment still requires judgement.

PSA.I replaces the spreadsheet cycle. Bring expense data in from finance, HR and expense systems in whatever shape it arrives. Let AI handle the first-pass classification, then review the rows that actually need judgement.

Privacy policy

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This policy explains how PSA.I Ltd (“PSA.I”, “we”, “us”) collects and uses personal data when you visit www.psaintelligence.co.uk or contact us about our software, PSA Intelligence (PSA.I).

1. Who we are

PSA.I Ltd is the controller of the personal data described in this policy. We are a private limited company registered in England and Wales, company number 16449332.

You can contact us about this policy or your personal data at info@psaintelligence.co.uk.

We are registered with the Information Commissioner’s Office (ICO) under registration number ZC259307.

Terms of use

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1. About these terms

These terms govern your use of www.psaintelligence.co.uk (the “website”), which is operated by PSA.I Ltd (“PSA.I”, “we”, “us”), a private limited company registered in England and Wales, company number 16449332. By using the website you accept these terms. If you do not accept them, please do not use the website.

Use of our software, PSA Intelligence (PSA.I), is governed by a separate written agreement with each customer, not by these terms.