HM Revenue & Customs (HMRC) has officially cancelled plans that would have required employers to provide more detailed information about employee working hours in their Real Time Information (RTI) PAYE reporting.
The expanded reporting requirement, which was originally scheduled to take effect from April 2025 before being postponed to April 2026, has now been completely abandoned following feedback from the business community.
Government Response to Business Concerns
In announcing the cancellation, HMRC acknowledged the potential burden the additional requirements would have placed on employers:
“The government has listened to businesses and acted on their feedback about the administrative burden the PAYE data requirements would bring.”
This decision represents a significant policy shift and demonstrates the tax authority’s willingness to respond to practical concerns raised by the business sector about reporting obligations.
Minimum Wage Compliance Remains Critical
While employers can breathe a sigh of relief about the cancelled reporting requirements, it’s important to remember that businesses still have existing obligations regarding employee working hours. Companies must maintain accurate records of hours worked to ensure compliance with minimum wage regulations.
This recordkeeping requirement has taken on even greater significance following the latest increase to minimum wage rates, which came into effect on April 1, 2025. Employers must ensure that all working time is correctly recorded and compensated at or above the new statutory minimum rates.
Seeking Professional Guidance
Even with this reporting requirement cancelled, PAYE and minimum wage compliance remain complex areas for businesses to navigate. Professional guidance can help ensure your business remains fully compliant with current regulations while minimising administrative burden.
Our team of payroll and employment tax specialists is available to review any aspect of your PAYE processes and minimum wage compliance. For personalised advice tailored to your business needs, please don’t hesitate to contact the team on 01905 777600 or email hello@ormerodrutter.co.uk
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