HMRC has confirmed that employers will not need to start providing more detailed employee hours data through PAYE Real-Time Information (RTI) until April 2026. The draft legislation was previously expected to take effect from April 2025.
Earlier this year, Draft regulations were published proposing changes to the information businesses must provide to HMRC via Self Assessment (SA) and PAYE Real-Time Information (RTI) returns.
One proposed change under RTI requires employers to report:
- The number of hours an employee worked for the payment reported.
- In certain cases, a description of the payment (i.e. when hours data is unavailable), selected from a list.
However, HMRC has acknowledged there is insufficient time to prepare for these changes, postponing the requirement to report detailed employee hours through RTI until at least April 2026.
Despite this delay, additional reporting requirements are still expected to take effect from April 2025 under SA. Shareholders in Owner Managed Businesses (OMBs) will need to report:
- The amount of Dividend income received from their company. This will be reported separately from other dividend income.
- The percentage shareholding in the Close company.
- Confirmation of whether they were a company director of a close company during the tax year.
Under SA, self-employed individuals will be required to provide start and end dates of their self-employment. This information is currently voluntary in the SA and the equivalents in Making Tax Digital (MTD).
The implementation of these regulations is subject to the decision of the new government.
Useful guides on this topic
Additional information requirements for OMBs
Employers, Shareholders in Owner-Managed Businesses (OMBs) and Self-Employed individuals will be required to disclose a range of new information to HMRC from 6 April 2025.
RTI: Real-Time Information for PAYE
What is RTI: Real-Time Information (RTI) reporting for PAYE? How does it work?
Dividend tax
This practical tax guide explains how dividends are taxed. It includes HMRC's examples, more detailed examples, including an Owner Managed Business (OMB) section together with tax planning tips.
Close companies: Definitions & control
What is a Close company? What are the tax consequences? What is a Participator? What is meant by Control of a company? What are the tests for Control?
A sole trader? Start here ...
This freeview ‘At a glance’ guide is essential reading for anyone who is thinking of starting in business on their own, as a sole trader.
Making Tax Digital for Income Tax: Data required by HMRC
Making Tax Digital: what information do you need to submit? Making Tax Digital for Income Tax: categories of information required. This list has been updated and major changes are noted.
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