I've just spent some time composing an answer to this question elsewhere on the site, only to find that I couldn't submit it because the thread has been removed. Now I've got to type it out again! Grrr!!! Please post once only!!!
PRS and PPL licences only apply to performances of recordings in public (or in workplaces etc).
If (say) an amateur choir is to record performances of choral works where the composer (e.g. G F Handel) died at least 70 years ago, and (where appropriate) the arranger has also been dead for at least 70 years, then no copyright problems arise.
If the same choir wished to record works where the composer (or arranger) had not been dead for at least 70 years, then copyright in the work (and/or the arrangement) would still be held by the composer (and/or arranger) or by his/her successors or by anyone to whom the copyright had been sold (e.g. a publishing company). Issuing a recording without the permission of all relevant copyright holders could lead to legal action being taken for breach of copyright.
If the plan is to copy excerpts from existing recordings, to make up a compilation, then (as well as the copyright issues referred to above) the performers and/or publishers of those recordings would also hold copyright in those performances. Again, using those recordings without permission could result in legal action being taken.
Chris