EU Settlement Scheme costs for EU employees - Update

In terms of employers choosing to reimburse their staff for the cost of applying to the settlement scheme, HMRC has advised that where an employer pays or reimburses their employees’ application costs, such a payment would be taxable as earnings from their employment and may also attract a National Insurance contributions (NICs) charge.  However, employers can also choose to meet the cost of this tax and NICs charge for their employees.  For many employers this can be managed within their existing arrangements with HMRC, using a PAYE Settlement Agreement (PSA) which allows employers to make one annual payment to cover all the tax and NICs due on minor, irregular or impracticable expenses or benefits for their staff. (For further clarification we suggest direct contact with HMRC).