New HMRC Payroll Reporting Requirements

HMRC’s proposed new legislation on reporting will have significant implications for payroll if fully implemented. It is proposed that from April 2025, employers completing RTI returns must detail the number of hours worked by each employee in respect of a pay period, if this can be determined.  The information the employer will provide will depend on how employees are paid.

• For hourly paid workers, the employer should report the number of hours actually worked.
• For those receiving an annual salary, the employer should report the contractual hours and should also include details of overtime hours.
• For salary payments such as statutory payments, termination payments or benefits in kind no hours would need to be reported.

If the hours cannot be determined, employers will need to confirm the reason as to why they are unable to do so.  The intention is that HMRC can ensure employers are meeting their minimum wage obligations. As we await details, we would urge employers to review their systems and processes to plan for these changes. To discuss your own situation please contact Claire Galloway, Payroll Manager E: clairegalloway@bakertillymm.co.uk T: 028 9032 3466