Implementation of detailed employee hours reporting delayed

Payroll changes on how employers report their employees’ hours worked due to come into force from April 2025 have been delayed until April 2026 HMRC has confirmed.

A government spokesperson said: ‘We are reviewing the proposed changes and timelines and will provide a further update following this work.’

HMRC said employers will not need to start providing more detailed employees’ hours data through PAYE real-time information (RTI) returns from April 2025 as previously proposed in the draft legislation aimed at 'improving the data' HMRC collects from taxpayers.

Currently employers report hours worked in wide bands. From April 2025 employers were due to provide the exact number of hours each employee worked for each pay period reporting details of bonus payments or benefits in kind and where pay is not dependent on hours worked. This has now been postponed for at least a year.

The government is...