Hours to be reported on RTI from April 2025

Earlier this year HM Revenue and Customs (HMRC) published a new technical consultation, which will require businesses to change the information they provide to HMRC through both Pay As You Earn (PAYE) Real Time Information (RTI) returns completed by employers, and Income Tax Self-Assessment returns.

For payroll professionals, whether working in-house or as a service provider, this means from April 2025, employers will be required to provide more detailed information on employees' hours paid via RTI. This may mean a change in the data gathered from your or your client's employees, to meet the new reporting requirements.

The measures will take effect no earlier than the start of the tax year 2025 to 2026:

• employers will be required to provide more detailed information on employees’ hours paid via Real Time Information PAYE reporting

• directors in owner-managed businesses will be required to provide the amount of dividend income received from their own companies separately to other dividend income, and the percentage share they hold in their own companies via their Self Assessment return

• the self-employed will be required to provide information on start and end dates of self-employment via their Self Assessment return

The Chartered Institute of Payroll Professionals (CIPP) policy team worked closely with Government officials on the consultation. HMRC has confirmed the measure will not come into force any earlier than the start of the tax year 2025 to 2026.

Source: Gov.uk