04:05
ISSUE 1
Will payroll managers and software be ready for the data change shift and new timing requirements to achieve payrolling?
So, two elements of recording and reporting change that are being looked at with introduction in April 2025 are: Number of Hours that pay relates to Postcode where work is undertaken Number of Hours Details of the requirements are scant with a fairly fixed introduction timeline of April 2025. The Full Payments Submission (FPS) is going to be required to report hours paid. That would be required even for a salaried employee. The new reporting fields have not yet been defined and are due to be released as part of the April 2025 FPS XML Schema. For those not hourly paid or where hours are not relevant, the employer must report a reason why they are not present. Pensioners who are reporting to HMRC via FPS will not have hours associated with their retirement payments. And other roles may have no element of hours associated with them. In those cases, the employer will be required to select and report their excuse reason for missing hours. It has been required for many years to have the number of irregular hours worked as part of the employee payslip. This FPS reporting requirement extends further to those who have regular hours and those salaried. The nuances of what to do for periods of absence such as holiday and sickness is not clear. Many employers will not currently be providing hours where not previously required.
To HMRC data quality is key (apparently)
The UK Real Time Information system was introduced in 2013 with regular reporting required to HMRC each time an employee was paid under a principle of on or before. Elements are far from perfect with mismatches, misbalance and duplications still appearing to cause significant headaches for payroll professionals. The UK HMRC are pushing forward with new requirements on employers for what they badge as better data. However, many in the industry will be confused as to how new items are better data, what they are really for and whether there are other aims which are not readily recognisable.
“The UK Real Time Information system
was introduced in 2013 with regular reporting required to HMRC each time an employee was paid under a principle of on or before.”
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