ICAEW.com works better with JavaScript enabled.

HMRC should delay plans for employers to provide more data

Author: ICAEW Insights

Published: 21 May 2024

The current start date of 5 April 2025 does not give employers and others enough time to prepare to give more detailed information on employees’ hours to HMRC.

ICAEW’s Tax Faculty has responded to a consultation on draft regulations intended to improve the data HMRC collects from employers and individual taxpayers from April 2025.  

Purpose of the regulations 

The regulations require employers to provide more detailed information on employees’ hours in pay as you earn (PAYE) real time information (RTI) returns. Directors of close companies must provide information about the company, their shareholding and any dividends received in their tax return. Where self-employment begins or ends during the tax year, the person must report the date of commencement or cessation in their tax return. 

ICAEW view on the requirement to provide employee hours 

The faculty continues to question the legal basis for requiring employers to provide employee hours. Employers will incur additional costs in complying with the measure. ICAEW recommends that HMRC reviews the measure over the next five years to determine whether it is providing value for money. 

The faculty has identified areas where it believes the regulations are flawed. Also, other new obligations are proposed for employers, such as the mandatory payrolling of employer-provided benefits-in-kind. Therefore, ICAEW urges HMRC to delay implementing the employer information changes until 6 April 2026. Detailed guidance for employers, payroll agents and payroll IT developers should be published as a matter of urgency if the current start date of April 2025 is to be maintained.  

ICAEW view on the requirements for self assessment taxpayers 

For taxpayers, the consequences of failing to provide details of interests in close companies should be made clear. Guidance is needed to explain how to determine the person’s percentage shareholding where a company has issued more than one class of share. However, identifying the date on which a trade started or ended can be difficult. Therefore, guidance should be provided in the notes to the tax return.  

The faculty recommends that a start date of the beginning of the tax year should be reported where an existing trade was previously exempt from reporting (for example, due to the trading allowance).   

Latest on business tax
The Tax Faculty

ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

Further resources

Latest news
Making tax digital image

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter

Practical guidance

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.

Open AddCPD icon

Add Verified CPD Activity

Introducing AddCPD, a new way to record your CPD activities!

Log in to start using the AddCPD tool. Available only to ICAEW members.

Add this page to your CPD activity

Step 1 of 3
Download recorded
Download not recorded

Please download the related document if you wish to add this activity to your record

What time are you claiming for this activity?
Mandatory fields

Add this page to your CPD activity

Step 2 of 3
Mandatory field

Add activity to my record

Step 3 of 3
Mandatory field

Activity added

An error has occurred
Please try again

If the problem persists please contact our helpline on +44 (0)1908 248 250