21 July 2023
Following a consultation seeking views on the data HM Revenue and Customs (HMRC) collects, a policy paper and has been released detailing the upcoming changes.
HMRC confirms that these changes will not come into effect until the 2025/26 tax year at the earliest. This gives employers time to prepare, but don’t leave it until it’s too late, changes for larger employers may take some time to implement.
The regulations will first be used to require further details on employee hours through Real Time Information (RTI) reporting. Additionally, shareholders who are company-owner managers in owner-managed businesses will need to use their Self Assessment tax return to provide:
- the amount of dividend income received from their own companies separately to other dividend income
- the percentage share they hold in their own companies.
Self employed individuals will also need to provide the start and end dates of their self employed status on their tax returns.
As HMRC release more information closer to its implementation, we will be here to update you, But start thinking about possible process changes before it is too late.
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