Following a technical consultation on 'Improving the data HMRC collects from its customers', HMRC have confirmed that proposals to require more detailed employee hours data to be reported through Real-Time Information (RTI) will be scrapped. 

Background: the proposals

In March 2024, a technical Consultation on draft legislation was published. This followed a previous Consultation which proposed the following changes from 6 April 2025:

Real-Time Information (RTI)

  • Employers would be required to report the number of hours an employee had worked for the payments reported under RTI (note: in August 2024, this change was Postponed to 6 April 2026). 

Self Assessment (directors/shareholders)

  • Individuals would be required to provide details on their tax return of whether they were a Director of a company during the year and, if so, whether the company was a Close company.
  • Close company directors would also need to report:
    • The name and registered number of the close company.
    • The amount of Dividend income received from the close company in the year. 
    • The percentage of the share capital they held. 

Self Assessment (self-employed)

  • Self-employed individuals would be required to provide, on their tax return, commencement and cessation dates for their self-employment if either fell in the year. 

Technical consultation outcome

HMRC have now confirmed that the changes proposed to RTI reporting will not go ahead, due to the administrative burden the requirements would bring.

  • The current requirement for employers to report normal hours worked, via RTI, will continue.

The Income Tax (Additional Information to be included in Returns) Regulations 2025 were laid in Parliament on 28 January 2025.

  • These regulations take effect from 6 April 2025 and introduce the changes described above to Self Assessment reporting for company director/shareholders and the self-employed. 

Useful guides on this topic

Close companies, definitions & control
What is a Close company? What are the tax consequences? What is a Participator? What is meant by Control of company? What are the tests for Control?

Dividend tax
This practical tax guide explains how dividends are taxed. It includes HMRC's own examples, more detailed examples, including an Owner Managed Business (OMB) section together with tax planning tips.

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.

RTI: Real-Time Information for PAYE
What is RTI: Real-Time Information (RTI) reporting for PAYE? How does it work?

A new director? Start here....
This freeview 'At a glance' guide is essential reading for company directors.

External links

Consultation outcome: Draft legislation: Improving the data HMRC collects from its customers

The Income Tax (Additional Information to be included in Returns) Regulations 2025

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