HMRC backtracks on employee data requirement

May 28, 2025

Plans requiring employers to provide more detailed information on the hours worked by employees in their Real Time Information PAYE reporting have now been cancelled.

The requirement to provide employee data was due to take effect from April 2026, and had already been postponed from April 2025.

Announcing the cancellation, HMRC said: ‘The government has listened to businesses and acted on their feedback about the administrative burden the PAYE…data requirements would bring.’

Whilst the decision to abandon the proposal will undoubtedly come as welcome news for employers, it is, of course, important to remember that employers are already under an obligation to keep records of employee hours worked in order to satisfy their responsibilities under the minimum wage regime. With the latest increase to minimum wage rates in effect from 1 April 2025, it is all the more critical to be confident that working time is correctly paid and recorded.

If you need any further information, please click the link Changes to HMRC data collection – GOV.UK

* Information for readers: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.

Business Newsletter – May 2025

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