HMRC scraps plan to collect employee working hours data

Employers will not have to provide more detailed employee hours data to HMRC from April 2026 the government has confirmed.

In its response to the consultation on improving the data HMRC collects from taxpayers HMRC says it will not proceed with the draft Income Tax (PAYE) (Amendment) Regulations 2024. It says it ‘has listened to businesses and acted on the administrative burden the requirements’ would have brought.

Exchequer to the Treasury James Murray said: ‘As part of the prime minister’s plan for change this government is committed to freeing up time and resources spent managing tax admin to support the growth of businesses and the economy. We have listened to their concerns about the previous government’s plans and will no longer introduce PAYE regulations relating to data collection of employee hours.’

The CIOT had raised several concerns about the proposal including that the...