There are changes afoot to payroll reporting, as announced by HMRC these come into effect on the 6th of April 2026 and could result in employers needing to change their current payroll and HR systems to comply with the new payroll reporting regulations. The changes to payroll reporting will allow HMRC to improve the data it can collect from its customers' payroll. These suggested changes to payroll systems are expected to ensure that employers record the hours employees worked and the payments made in their real-time information PAYE Returns.
What's changing with payroll
Starting on April 6, 2026, employers completing RTI returns must provide HMRC with details on the exact number of hours worked by each employee. The wideband systems are being replaced. Your payroll reports must show the number of hours worked per pay period.
HMRC is also asking for data on more than just employee hours. They also want data on holidays and sick leave with exact dates to better understand working patterns.
If employers are not readily able to make available this information, they must adjust their payroll and HR systems to ensure they can provide it.
What employers need to do now
It's vital that business owners prepare now for the change, and to ensure a smooth transition to the new payroll regulations ahead of the 6th April deadline. Putting things in place now will make the start of the 2025 payroll year simpler to administer and avoid business disruption.
Review your current payroll systems.
To ensure you are ready for the 2026 deadline, ensure your current payroll systems are up to date and capable of fulfilling the new payroll reporting requirements
Upgrade early
If the payroll system you have in place can't run the required reports according to the new regulations, you will need to upgrade to something with these capabilities. For best practice, we recommend ensuring you have the correct payroll tools early to ensure a smooth transition come April 6th.
Talk to your team
When challenges arise, your team must be fully aware of the new changes to your payroll systems. Being transparent with your team will help you transition to the latest payroll rules.
How we can help
Changing payroll processes can be lengthy, and if done at the last minute, it can make the day-to-day running of your business increasingly complex. Our Payroll team can help you manage your transition to the new payroll regulations. We will go through the current systems that are in place and ensure you are ready for the changes on April 6. We will also make sure that your payroll data is correct and submitted to HMRC. For more help with your payroll contact Moore South today.