The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2025
- Made under: Income Tax (Earnings and Pensions) Act 2003
The Regulations amended the Income Tax (Pay As You Earn) Regulations 2003 to replace references to the Inland Revenue with 'HMRC' in interpretation and electronic communication provisions.
These Regulations, enacted by the Commissioners for His Majesty’s Revenue and Customs, amend the Income Tax (Pay As You Earn) Regulations 2003, which come into force on November 24th, 2025.
The primary changes substitute references relating to the 'Inland Revenue' with 'HMRC' in two specific areas: the interpretation definition and the regulations concerning the use of unauthorized electronic communication methods.
These amendments are largely consequential and aimed at updating terminology and allowing Commissioners to undertake functions previously reserved for officers.
Arguments For
Updating statutory language to formally reflect the current administrative body, His Majesty's Revenue and Customs (HMRC), improving clarity and administrative precision in tax law.
Streamlining internal operational capacity by allowing Commissioners, in addition to officers, to perform certain functions previously restricted, potentially increasing efficiency in PAYE administration.
Arguments Against
Introducing minor, albeit necessary, amendments to existing regulations creates administrative overhead for compliance, although policy changes are absent.
Any amendment to primary tax legislation, even consequential, requires formal legislative time, which could be reserved for substantive policy changes.
The Commissioners for His Majesty’s Revenue and Customs make these Regulations in exercise of the powers conferred by section 684(1) and (2) of the Income Tax (Earnings and Pensions) Act 2003.
The Commissioners for HM Revenue and Customs created these regulations using the specific powers granted to them under sections 684(1) and (2) of the Income Tax (Earnings and Pensions) Act 2003.
Citation and commencement
- These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2025 and come into force on 24th November 2025.
The official title of this legislation is the Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2025.
They officially become active law on November 24th, 2025.
Amendment of the Income Tax (Pay As You Earn) Regulations 2003
- (1) The Income Tax (Pay As You Earn) Regulations 2003 (“the PAYE Regulations”) are amended as follows.
The rules contained within the Income Tax (Pay As You Earn) Regulations 2003 are now subject to the subsequent amendments detailed in this instrument.
(2) In regulation 2(1) (interpretation), in the definition of “Inland Revenue”, for “any officer of the Board of Inland Revenue” substitute “HMRC”.
In the definitions section of the existing PAYE Regulations, the phrase 'any officer of the Board of Inland Revenue' is officially replaced with the abbreviation 'HMRC'.
(3) In regulation 198(1) (use of unauthorised method of electronic communication), for “the Board of Inland Revenue or to the Inland Revenue” substitute “HMRC”.
The text within the rule governing the submission of information using unapproved electronic methods is updated; references to the 'Board of Inland Revenue or to the Inland Revenue' are both replaced simply with 'HMRC'.
EXPLANATORY NOTE (This note is not part of the Regulations)
The Regulations amend the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682) (“the PAYE Regulations”).
This explanatory note confirms that the purpose of these regulations is to make changes to the existing framework known as the PAYE Regulations (Statutory Instrument 2003/2682).
Regulation 2(1) of the Regulations amends the definition of Inland Revenue in regulation 2 of the PAYE Regulations to include the Commissioners of His Majesty’s Revenue and Customs as well officers of His Majesty’s Revenue and Customs. As a consequence of this amendment, Commissioners will be able to carry out some functions previously only carried out by officers.
The amendment made in regulation 2(1) updates the definition area to state that the Commissioners of HMRC, in addition to HMRC officers, are included.
This change will allow the Commissioners to legally perform certain duties that were previously restricted only to HMRC officers.
Regulation 2(2) of the Regulations makes a consequential amendment to regulation 198(1) of the PAYE regulations so that it does not refer to the Commissioners twice.
The change made in regulation 2(2) is a follow-on change to regulation 198(1).
This ensures the text remains accurate after the substitution, preventing the regulation from redundantly mentioning the Commissioners.
A Tax Information and Impact Note has not been prepared for this instrument as it contains no substantive changes to tax policy.
Official guidance states that a detailed analysis noting the impact on tax revenue and policy has not been produced because these amendments introduce no fundamental changes to tax rules or policy.
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