Along with legislation, when it comes to HMRC’s collection of taxes and customs duties, we must also look at any Directions they make. A Direction is a formal instruction from the UK’s tax collection and administration agency used to ensure compliance with tax and customs laws. They are powerful directives outside of the legislative process.
On 14 October 2025, HMRC issued a Direction, effective 21 October 2025. This concerns how a tax code can be given to an employee and refers to The Income Tax (Pay As You Earn) Regulations 2003 which is the main administrative legislation regarding all things Income Tax.
In short, the Direction says that the giving of a notice of tax code to an employee is valid if this is issued electronically via digital services offered by HMRC. This includes the Personal Tax Account (PTA).
For Bookkeepers
This Direction may seem a small move, however, it is significant members are aware of this. What it means is that a tax code notification is just as valid if received electronically compared to one given on paper.
Employees that use HMRC’s digital services, including the PTA, need to be aware that if a tax code is issued electronically, it will be regarded as having been delivered and received. Employees should no longer expect the tax code to be delivered on paper if they have a digital way of receiving it.
