Additional Hours data through RTI plans scrapped
An email from HM Revenue and Customs’ (HMRC) Software Developer Support Team (SDST) has confirmed that the planned implementation of additional hours worked data in 2026 will no longer proceed. The draft Income Tax (Pay As You Earn) (Amendment) Regulations 2024 intended to bring in these new requirements will not be progressed. The current requirement for employers to report normal hours worked will continue.
The Chartered Institute of Payroll Professionals (CIPP) reported that the email read:
“Employers will no longer be required to provide more detailed employee hours data through Pay As You Earn (PAYE) Real Time Information (RTI) returns from April 2026 as previously proposed. The government has listened to feedback and acknowledges the potential administrative burden highlighted by businesses. Therefore, the draft Income Tax (Pay As You Earn) (Amendment) Regulations 2024 intended to bring in these new requirements will not be progressed further. The current requirement for employers to report normal hours worked will continue.
The government remains committed to data transformation and will continue to focus on other initiatives delivering improved data, including Making Tax Digital for ITSA, digitalising business rates, and investing in our IT infrastructure”
Feedback from CIPP members highlighted that these changes would significantly increase burdens and create challenges, especially for smaller employers. Many payroll professionals, therefore, welcome the decision to reconsider.
The CIPP reported that it will continue collaborating with HMRC and ministers to ensure payroll professionals are taken into account in all future legislative and process changes.
