Citation and commencement

1.  These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment) Regulations 2025 and come into force on 6th April 2025.

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

2.  The Income Tax (Pay As You Earn) Regulations 2003( 3) are amended as follows.

3.  In regulation 2(1) insert in the appropriate place—

““ secondary threshold ” means the secondary threshold for Class 1 contributions for the purposes of section 5(1) of the Social Security Contributions and Benefits Act 1992( 4) ; ”

4.  In regulations 47(2), 48(2), 49C(2) and 49D(2)—

(a) before “the lower earnings limit” insert “either”; and

(b) after “the lower earnings limit” insert “or the secondary threshold, whichever is the lesser amount,”.

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”) ( S.I. 2003/2682) which make provision for the assessment, charge, collection and recovery of income tax in respect of pay as you earn income.

Regulation 3 of these Regulations amends regulation 2(1) of the PAYE Regulations which contains the definitions of terms in those Regulations. Regulation 3 inserts a new definition of “secondary threshold” into the PAYE Regulations.

Regulation 4 of these Regulations amends regulations 47(2), 48(2), 49C(2) and 49D(2) of the PAYE Regulations to add reference to the secondary threshold so that the PAYE Regulations now require an employer to apply either the lower earnings limit or the secondary threshold, whichever is the lesser amount, on the making of the first relevant payment.

A Tax Information and Impact Note has not been prepared for these Regulations as they contain no substantive changes to tax policy.