Real Time Information (RTI) revolutionized UK payroll when it was introduced, requiring employers to submit payroll data to HMRC on or before every payday. Since then, the core data requirements have remained relatively stable. However, from April 2026, HMRC is implementing significant changes to the RTI reporting schema. Employers will be required to report much more granular details about employee hours, leave, and sickness. This represents the most substantial update to RTI submissions in over a decade.
The Key Change: Mandatory Reporting of Actual Hours Worked
Under the old RTI rules, employers only had to select an hourly band (e.g., "A: Up to 15.99 hours," "B: 16 to 23.99 hours") to indicate the employee's working pattern. This band was often static and did not reflect actual fluctuations in hours worked, especially for salaried employees or those on zero-hours contracts.
From April 2026, HMRC is making it mandatory to report the **actual number of hours worked** by the employee during the pay period. This change is designed to help HMRC monitor compliance with the National Minimum Wage (NMW) and verify tax credit and benefit entitlements more accurately. For businesses with hourly workers or variable overtime, this means payroll teams can no longer rely on static master data; they must ingest precise timesheet data into the payroll engine for every single pay run. Utilizing managed UK payroll services with automated time-tracking integrations is the most secure way to handle this complexity.
Detailed Leave & Sickness Data
In addition to actual hours, the new RTI schema requires detailed reporting of employee leave and sickness periods. This includes reporting specific start and end dates of statutory absences (such as sickness, maternity, paternity, and bereavement leave) directly within the Full Payment Submission (FPS). Previously, this data was calculated locally in the payroll software and only the total statutory payment amount was reported.
This new reporting requirement is directly linked to the removal of SSP waiting days, as HMRC will now be able to cross-reference the exact dates of sickness against the SSP paid to ensure compliance. For multinational companies managing UK staff from overseas hubs, this demands real-time synchronization between your HR system (where leave is requested) and the payroll system (where RTI is generated).
Implications for Payroll Systems and Processes
The new RTI requirements place a heavy burden on technology. To comply with the April 2026 rules: - **Software Updates**: Your payroll software must be updated and tested to handle the new RTI file schema (FPS version 2026/27). - **Time-Tracking Discipline**: You must implement strict deadlines for timesheet submissions. Late or estimated hours will lead to inaccurate RTI filings, which can trigger HMRC inquiries or minimum wage compliance audits. - **Record-Keeping Reconciliations**: Sickness and leave records must match the payroll register perfectly. Your accounting team must reconcile these statutory records monthly. Professional UK accounting services ensure that your payroll records, general ledger accruals, and RTI submissions are aligned.
Preparing for the Deadline
Do not wait until April 2026 to update your processes. Businesses should use the preceding months to audit their time-tracking systems, clean up employee master records (particularly contract terms and hourly rate definitions), and run test submissions with their software provider.
Payline Worldwide's managed payroll services are fully configured for the new RTI reporting guidelines. We manage the collection, validation, and submission of actual hours and leave data, ensuring your business stays compliant without administrative stress. Contact us today to secure your payroll transition.