The Treasury has agreed to drop a planned PAYE filing regulation as part of Prime Minister Sir Keir Starmer’s pledge to cut red tape.

Employers were expected to submit data on employee hours to the tax office from April 2026. But the Income Tax PAYE Amendment Regulations 2025 will no longer be introduced.

The Treasury said it has listened to the concerns from businesses and stakeholders and does not want to increase the burden on businesses that would arise from these changes.

James Murray, Exchequer to the Treasury, said: “As part of the Prime Minister’s Plan for Change, this government is committed to freeing up time and resources spent managing tax admin to support the growth of businesses and the economy.”

The associated Income Tax (Additional Information to be included in Returns) Regulations 2025 will still come into force on 6 April 2025.