Employers, Shareholders in Owner-Managed Businesses (OMBs) and Self-Employed individuals will be required to disclose a range of new information to HMRC from 6 April 2025. 

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Draft regulations just published make changes to the information businesses provide to HMRC through both Self Assessment (SA) and PAYE Real-Time Information (RTI) returns.

From 6 April 2025: 

  • Under RTI, employers will be required to report:
    • The number of hours an employee has worked in respect of the payment reported under RTI.
    • In certain cases, a description of the payment must be reported. Where all or part of a payment does not have some data on hours, employers must tell HMRC by selecting the relevant descriptions from a list.
  • Under SA, shareholders in Owner Managed Businesses (OMBs) will be required to provide:
    • The amount of Dividend income received from their company. This will be reported separately from other dividend income.
    • The percentage shareholding in the Close company.
    • Confirmation of whether they were a company director of a close company during the tax year.
  • Under SA, Self-employed individuals will be required to provide start and end dates of their self-employment. This information is currently voluntary in the SA and the equivalents in Making Tax Digital (MTD).

HMRC says that it is hoped that the changes will provide better outcomes for taxpayers, as well as improve compliance, resulting in a more resilient tax system.

The consultation will close on 9 May 2024. 

Useful guides on this topic

RTI: Real-Time Information for PAYE
What is RTI: Real-Time Information (RTI) reporting for PAYE? How does it work?

Dividend tax
This practical tax guide explains how dividends are taxed. It includes HMRC's examples, more detailed examples, including an Owner Managed Business (OMB) section together with tax planning tips.

Close companies: Definitions & control
What is a Close company? What are the tax consequences? What is a Participator? What is meant by Control of a company? What are the tests for Control? 

A sole trader? Start here ...
This freeview ‘At a glance’ guide is essential reading for anyone who is thinking of starting in business on their own, as a sole trader.

Making Tax Digital for Income Tax: Data required by HMRC
Making Tax Digital: what information do you need to submit? Making Tax Digital for Income Tax: categories of information required. This list has been updated and major changes are noted.

External Links 

Open consultation: Draft legislation: Improving the data HMRC collects from its customers