UK’s HM Revenue and Customs (HMRC) have informed HMRC’s Software Developer Support Team (SDST) in an email that employers do not need to provide more detailed employee hours data through Pay As You Earn (PAYE) Real Time Information (RTI) returns starting in April 2026. The email from HRMC, as shared by the Chartered Institute of Payroll Professionals (CIPP) on 28 February 2025, stated:
“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 of the 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.”
A Welcome Decision for Payroll Professionals
Payroll professionals, payroll bureaus, and CIPP members welcome this decision, as CIPP’s message was shared on LinkedIn with comments of relief and support. The now-abandoned proposal raised concerns about the increase in administrative burdens that the changes would mean. Employers, especially those with smaller teams, reported substantial difficulties in adjusting to the suggested requirements.
Feedback from CIPP’s members played a key role in underscoring the challenges the additional reporting would have created. The decision to halt the draft Income Tax (Pay As You Earn) (Amendment) Regulations 2024 reflects the government’s responsiveness to these concerns. The CIPP said it will continue to work with HMRC and ministers to ensure that payroll professionals are considered with all future legislative and process changes.
What’s Next for Employers?
Employers with payroll responsibilities in the UK can now focus on maintaining compliance with the current requirement to report “normal hours worked” through PAYE RTI. However, they should stay informed about ongoing payroll data reporting requirements as HMRC continues to focus on getting even richer and more timely payroll data. While this may bring other changes in the future, it also further confirms the need for accurate, timely, and compliant payroll results.
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Max van der Klis-Busink, MCIPP, RPP, is the Owner of Passion For Payroll and Vice President of Global Strategy on PayrollOrg’s Board of Directors.
