Policy paper

Commissioners' Directions under section 43E of the Taxes Management Act 1970 and regulation 65A(5) and (6) of the Income Tax (Pay As You Earn) Regulations 2003 and Regulation 189 of the Income Tax (Pay As You Earn) Regulations 2003 (accessible version)

Published 20 March 2026

1. Interpretation

In this direction:

(a) ‘the PAYE Regulations’ means the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682);

(b) ‘ITEPA’ means the Income Tax (Earnings and Pensions) Act 2003;

(c) ‘the specified information’ means the information referred to in regulation 65A(4) of the PAYE Regulations;

(d) ‘employee’ has the meaning given in regulation 2 of the PAYE Regulations;

(e) ‘HMRC’ means His Majesty’s Revenue and Customs;

(f) ‘P87 form’ means the form published by HMRC on 12 February 2024 at    

https://www.gov.uk/guidance/send-an-income-tax-relief-claim-for-job-expenses-by-post-or-phone

(g) ‘advanced electronic signature’ means a digital signature which meets the requirements set out in Article 26 of Regulation (EU) No 910/2014 of the European Parliament and of the Council on electronic identification and trust services for electronic transactions in the internal market;

(h) ‘approved method of electronic communication’ has the meaning given in regulation 189 of the PAYE Regulations;

(i) ‘deductible expenses’ has the meaning given in regulation 65A(1)(a) of the PAYE Regulations;

1. (j) ‘digitally excluded’ means a person:

   1. (i) who is a practising member of a religious society or order whose beliefs are incompatible with using electronic communications, or

   2. (ii) for whom it is not reasonably practicable to use electronic communications, for any reason (including age, disability or location).

(k) ‘Personal Tax PAYE digital service’ means the digital services, available via the Government Gateway or any Government secure log in facility which supersedes this, offered to individuals who are employees to access and manage their tax information. 

(l) ‘Government Gateway’ means the secure online facility for accessing government services;

(m) ‘fixed or flat rate expenses’, for the purposes of direction 5, are fixed amounts of deductible expenses agreed for certain categories of employees under chapter 4 of part 5 of ITEPA;

(n) ‘tax year’ has the meaning given in regulation 2 of the PAYE Regulations;

(o) ‘current tax year’ means the year of assessment in which the notification is treated as being made under these directions.

2. Form of specified information

An employee who wishes to notify HMRC of deductible expenses under regulation 65A of the PAYE Regulations must provide the specified information using, either:

(a) the P87 form in hard copy by post, which must be signed with an advanced electronic signature in a case falling within direction 4 or

(b) any form made available for this purpose through the Personal Tax PAYE digital service.

3. Manner of specified information

An employee who wishes to notify HMRC of deductible expenses under regulation 65A of the PAYE Regulations may provide the specified information/notify in one of the following manners:

(a) by post;

(b) by telephone, in a case falling within direction 5;

(c) using the approved method of electronic communication specified in direction 6.

4. Hard copy forms requiring an advanced electronic signature

An employee who nominates a paid tax adviser to receive any payment due from HMRC must sign the hard copy form using an advanced electronic signature, unless HMRC has agreed the employee is digitally excluded upon notification of this to HMRC, by telephone, prior to sending the form.

5. Telephone

An employee may only notify HMRC of deductible expenses by telephone where the notification relates to:

(a) fixed or flat rate expenses;

(b) withdrawing expenses when they are no longer eligible or changing their existing expenses to a lower amount in relation to the current tax year.

6. Approved method of electronic communication

The approved method of electronic communication for notification of the specified information is the Personal Tax PAYE digital service accessed through the Government Gateway, or any Government secure log in facility which supersedes this.

7.  Revocation

The following paragraphs of the Statement of Practice (SP1/10) of 23rd April 2010, updated on 30th July 2021 are revoked:

(a) the paragraph relating to Expenses in Annex A (Information That Will be Accepted), and

(b) paragraph 4 of Part 2 in the Schedule to Annex B (Conduct of Income Tax Business by Telephone Directions).

8. Commencement

The directions shall come into force on 6 April 2025.

                  2nd April 2025                                                                 Angela MacDonald

                   2nd April 2025                                                                     Jonathan Athow

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