PAYE (General)

Deadlines & reporting

Employees’ hours data through PAYE

Although initially anticipated for April 2025, the requirement to report employees’ hours worked through PAYE is now expected no sooner than April 2026. We’re including this update here as a heads-up for employers, as it remains on the horizon.

This change is part of the broader Making Tax Digital (MTD) initiative, which aims to modernise the UK tax system through real-time data reporting.

The new hours data reporting requirement will likely impact how employers collect and submit information on part-time and full-time employees, including zero-hours contracts.

The delay to 2026 gives employers additional time to adjust their payroll processes, ensuring compliance with this upcoming legislation.

Reduced NI rates for married persons

Starting from the 2025-26 tax year, HMRC will introduce a stricter validation process to reject FPS submissions where a reduced rate NICs category letter is used incorrectly. This update is included here as an advance notice for employers.

This rule specifically applies to married female-identifying individuals and widows who have elected to pay the reduced rate of National Insurance.

Moving forward, the submission will be rejected if the individual does not qualify based on their date of birth. This change addresses the ongoing issue of misuse of the reduced rate NI scheme, which was originally introduced as a concession for married women and widows before 1977.

The scheme is now closed to new entrants, and the validation process ensures that only those still eligible can claim the reduced rate.