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The Income Tax (Pay As You Earn) (Amendment) Regulations 2026

S.I. 2026/189 · Made 27 February 2026

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

INCOME TAX

Made 27th February 2026

Laid before the House of Commons 2nd March 2026

Coming into force 6th April 2026

The Commissioners for His Majesty’s Revenue and Customs make these Regulations in exercise of the powers conferred by section 113(1) of the Taxes Management Act 1970f1, section 133(1) and (2) of the Finance Act 1999f2, section 136(1) and (2) of the Finance Act 2002f3 and section 684(1) and (2) of the Income Tax (Earnings and Pensions) Act 2003f4 and now exercisable by themf5.

Annotations to the whole text

Footnotes

f1

1970 c. 9.

f2

1999 c. 16.

f3

2002 c. 23.

f4

2003 c. 1. Section 684 was relevantly amended by paragraph 102(2) of Schedule 4 to the Commissioners for Revenue and Customs Act 2005 (c. 11) (“CRCA”), paragraphs 2 and 3(2) of Schedule 58 to the Finance Act 2009 (c. 10), section 17(1) and (2) of the Finance Act 2015 (c. 11) and section 15 of the Finance Act 2016 (c. 24).

f5

The functions of the Commissioners of Inland Revenue were transferred to the Commissioners for His Majesty’s Revenue and Customs by section 5 of the Commissioners for Revenue and Customs Act 2005 (“CRCA”). Section 50(1) of CRCA provides that, in so far as it is appropriate in consequence of section 5, a reference, however expressed, to the Commissioners of Inland Revenue is to be read as a reference to the Commissioners for His Majesty’s Revenue and Customs.

Contents

  1. 1Citation and commencement
  2. 2Amendment of the Income Tax (Pay As You Earn) Regulations 2003
  3. Signature
  4. Explanatory note

1Citation and commencement

These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment) Regulations 2026 and come into force on 6th April 2026.

2Amendment of the Income Tax (Pay As You Earn) Regulations 2003

(1)

The Income Tax (Pay As You Earn) Regulations 2003f1 are amended as follows.

(2)

In regulation 61C (authorised employer), after paragraph (9) insert—

“(9A)

An application cannot be made under this regulation for the tax year 2027-28 or subsequent tax years.”.

(3)

In regulation 207 (specified information), after paragraph (1) insert—

“(1A)

But the information described in paragraph (1)(f) is not “specified information” in relation to an employer who has ceased to carry on business.

(1B)

In paragraph (1A), “business” includes any trade, concern or undertaking.”.

Signature

Penny Ciniewicz

Jonathan Athow

Two of the Commissioners for His Majesty’s Revenue and Customs

27th February 2026

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Income Tax (Pay As You Earn) Regulations 2003 (the “PAYE Regulations”).

Regulation 2(2) removes the option for employers to voluntarily register for pay-rolling benefits in kind for the tax year 2027-28 and subsequent tax years, as pay-rolling will become mandatory from that tax year.

Regulation 2(3) amends regulation 207 of the PAYE Regulations by removing the requirement for employers, whose businesses cease trading, to submit the annual return of the P11D via an official computer system using an approved method of electronic communication and enabling them to choose whether to submit the return electronically or in paper form in accordance with regulation 211.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.