Draft legislation: Improving the data HMRC collects from its customers

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
• directors 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.  

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