Since 2023, HMRC have been exploring ways to enhance the quality of the data they collect from taxpayers. While several areas were under review, the most relevant development for employers was the potential requirement for them to report the hours worked by each employee within their Real Time Information (RTI) filings. 

We reported on the proposed changes in our September 2024 edition. This new obligation was anticipated to take effect from April 2026 (delayed from April 2025). HMRC believed that including this additional data would support the analysis of labour market trends and contribute to National Minimum Wage compliance.

The draft legislation to implement this change was published for consultation in the spring of last year. The ATT was not in favour of this change. 

In response to general feedback, HMRC have recently stated that they have carefully considered the concerns raised, particularly regarding the potential administrative burden on businesses. As a result, HMRC have decided not to proceed with the additional reporting requirements. Employers are reminded that the existing requirement to report normal hours worked remains in effect.

This article reflects the position at the date of publication. If you are reading this at a later date you are advised to check that that position has not changed in the time since. 

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