The Income Tax (Pay As You Earn) Regulations 2003

[F1 Relief from income tax on PAYE income: information about deductible expenses U.K.

65A.— (1) This regulation applies if, in relation to a tax year—

(a) an employee is entitled to relief from income tax in consequence of deductions allowed under Chapter 2 [F2 or Chapter 4] of Part 5 of ITEPA (deductions for employee’s expenses) (“the deductible expenses”),

(b) the total amount of the deductible expenses for that employee in respect of all employments in that tax year does not exceed £2,500, and

(c) the employee has not been given a notice under section 8 of TMA (personal return) or delivered a purported return within section 12D of TMA (returns made otherwise than pursuant to a notice) for the tax year to which the deductible expenses relate.

(2) For the purposes of paragraph (1)(c), a notice under section 8 of TMA is treated as not having been given to an employee if that notice has been withdrawn in accordance with section 8B of that Act (withdrawal by HMRC of notice under section 8 or 8A).

(3) Without prejudice to section 711 of ITEPA (right to make a return), the employee may notify HMRC of the deductible expenses by providing specified information relating to those expenses to HMRC in accordance with this regulation.

[F3 (4) For the purposes of this regulation, the specified information means—

(a) the tax year in relation to which the employee is entitled to relief from income tax as described in paragraph (1)(a) in respect of the deductible expenses notified;

(b) in relation to that employee—

(i) the employee’s full name,

(ii) the employee’s date of birth,

(iii) the employee’s address (including postcode), and

(iv) the employee’s national insurance number (if any);

(c) in relation to each of the deductible expenses notified—

(i) the amount of the deductible expense,

(ii) a description of the deductible expense,

(iii) the employer’s PAYE reference of the relevant employer, and

(iv) in the case of a deductible expense allowed under Chapter 4 of Part 5 of ITEPA, a description of the industry or business sector of the relevant employer.

(4A) The relevant employer in relation to a deductible expense is the person to whom paragraph (4B) applies.

(4B) This paragraph applies to a person if—

(a) the person is the employee’s employer in relation to an employment, and

(b) the deductible expense in question is allowed from the employee’s taxable earnings from that employment.]

(5) The specified information must be provided in the form and manner given in a direction made by the Commissioners for Her Majesty’s Revenue and Customs for this purpose.

(6) A direction made under paragraph (5) may also—

(a) authorise, or specify a requirement for, the delivery of information by an approved method of electronic communication, and

(b) where such a requirement is specified, specify the persons required to deliver information to HMRC by the approved method of electronic communication.

(7) The specified information cannot be provided more than 4 years after the end of the tax year to which the information relates.]

Textual Amendments

F1 Reg. 65A inserted (6.5.2022) by The Income Tax (Pay As You Earn) and the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2022 (S.I. 2022/227), regs. 1(3), 3

F2 Words in reg. 65A(1)(a) inserted (20.12.2022) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2022 (S.I. 2022/1243), regs. 1, 3(a)

F3 Reg. 65A(4)-(4B) substituted for reg. 65A(4) (20.12.2022) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2022 (S.I. 2022/1243), regs. 1, 3(b)