The UK government has announced that 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. This decision follows feedback from businesses, which highlighted the potential administrative burden of the proposed changes.
The draft Income Tax (Pay As You Earn) (Amendment) Regulations 2024, which aimed to introduce these new reporting requirements, will not be progressed further. Instead, the current requirement for employers to report normal hours worked will remain in place.
The government’s decision to halt the progression of the draft regulations reflects its consideration of the concerns raised by the business community. Many businesses indicated that the additional reporting requirements could have imposed significant administrative challenges.
Despite this change, the government remains committed to its broader agenda of data transformation. Efforts will continue to focus on other initiatives designed to improve data quality and accessibility. Key projects include:
While the decision to maintain the current reporting requirements may ease some concerns for employers, the government’s ongoing commitment to data transformation indicates that further changes and improvements are likely. Businesses are encouraged to stay informed about upcoming initiatives and prepare for future developments in the digitalisation of tax and business processes.
This policy update reflects the government’s approach to regulatory changes, balancing the needs and capabilities of businesses with the goal of modernising data systems.
Adapting to these changes can be challenging, but our SD Worx payroll experts are here to help. We can provide practical advice on aligning your systems with the new rules, ensuring smooth compliance and effective record management.
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