Employment Expenses
For tax-payers that have employment expenses over £120 coded, their codes have been amended if they also meet one of the following criteria:
- no current PAYE income;
- an employment gap of a full tax year since the employment expense was claimed;
- no Self-Assessment (SA) footprint since 2021/22, where there are indicators that the expense should have been resubmitted via SA; and,
- employment expenses within their code is higher than their 2022/23 SA return.
Where HMRC have data that indicates that the tax-payers circumstances have changed since they applied for Employment expenses, we are taking action to correct that tax code.
Higher Rate Gift Aid Relief
For tax-payers that have Higher Rate Gift Aid Relief coded, their codes have been amended to remove the relief from 2026/2027 if they meet all of the following criteria:
- the same amount of Gift Aid Relief has been coded for at least three years; and,
- there has been no SA footprint for at least three years.
As the amount coded has not changed for at least three years, it is highly unlikely the tax-payer has claimed or confirmed the relief via telephone, webchat or in writing. Our research indicates the majority of regular Charitable donations do not continue beyond 12-18 months.
If the tax-payer believes that they remain entitled to Gift Aid Higher Rate Relief and/or employment expenses from April 2026, they should submit their claim via the normal BAU processes.
Kind regards,
Howard Gross BFP FCA FCCA CTA, Director
