OpenConsultation consultationoutcome

Draft legislation: Improving the data HMRC collects from its customers

From:
HM Revenue & Customs
Published
14 March 2024
Last updated
28 January 2025 — See all updates
This consultation has concluded

Detail of outcome

The government is grateful for the time taken by respondents to engage with the proposed requirements in the draft regulations and provide feedback. The government has listened to this feedback and appreciates the broad support for improved data but acknowledges the challenging balance between collecting improved data and potentially increasing burdens on business.

Next steps

The government has decided to progress the draft Income Tax (Additional Information to be included in Returns) Regulations 2025. These regulations were laid in Parliament on 28 January 2025 and will immediately become law, taking effect from 6 April 2025, subject to remaining administrative parliamentary procedures.

The draft Income Tax (Pay As You Earn) (Amendment) Regulations 2024 will not be progressed further. The government has listened to businesses and acted on their feedback about the administrative burden the requirements in these regulations would bring. The current requirement for employers to report normal hours worked will continue.

The government remains committed to data transformation and will continue to focus on other initiatives delivering improved data, including Making Tax Digital for Income Tax Self Assessment, digitalising business rates, and investing in our IT infrastructure.

Original consultation

Summary

We welcome views on this technical consultation on 2 related draft Statutory Instruments published with supporting Explanatory Memoranda.

This consultation closesran atfrom
to

Consultation description

We welcome views on this technical consultation on the following 2 related draft Statutory Instruments published here with supporting Explanatory Memoranda. You can read:

  • (Draft) The Income Tax (Pay As You Earn) (Amendment) (No. ***) Regulations 2024
  • (Draft) The Income Tax (Additional Information to be included in Returns) Regulations 2024 
  • (Draft) Explanatory Memorandum to The Income Tax (Pay As You Earn) (Amendment) (No. ***) Regulations 2024
  • (Draft) Explanatory Memorandum to The Income Tax (Additional Information to be included in Returns) Regulations 2024 
  • (Draft) Statutory Instruments impacts

The government is legislating to require businesses to change the information they provide to HMRC through both Income Tax Self Assessment and Pay As You Earn (PAYE) Real Time Information (RTI) returns completed by employers.

The Finance Act 2024 introduced powers to enable the collection of this additional data and for HMRC to specify, through Statutory Instruments, the particular information required within those returns. The draft regulations published here specify the additional information required from relevant taxpayers. 

From April 2025: 

  • employers will be required to provide more detailed information on employees’ hours paid via Real Time Information PAYE reporting
  • shareholdersdirectors in owner-managed businesses will be required to provide the amount of dividend income received from their own companies separately to other dividend income, and the percentage share they hold in their own companies via their Self Assessment return  
  • the self-employed will be required to provide information on start and end dates of self-employment via their Self Assessment return

We expect businesses, employers, company owner managers, the self-employed, and other stakeholders with an interest in the proposed changes to be interested in this consultation.  

Operative date 

The measure will take effect no earlier than the start of the tax year 2025 to 2026.

Documents

(Draft) The Income Tax (Pay As You Earn) (Amendment) [(No. ***)] Regulations 2024

ODT, 24.4 KB

This file is in an OpenDocument format

(Draft) The Income Tax (Additional Information to be included in Returns) Regulations 2024 

ODT, 24.2 KB

This file is in an OpenDocument format

(Draft) Explanatory Memorandum to The Income Tax (Pay As You Earn) (Amendment) (No. ***) Regulations 2024

HTML

(Draft) Explanatory Memorandum to the Income Tax (Additional Information to be included in Returns) Regulations 2024 

HTML

(Draft) Statutory Instruments impacts: improving the data HMRC collects from its customers

HTML