HMRC have confirmed that employers and agents are no longer required to supply the Bacs hash (field 118) for 2023/24 onwards.

The hash code automatically generated by payroll software during each payroll cycle appears on the Full Payment Submission (FPS). This unique code is essential for employees who receive payments via Bacs, whether in part or in full.

The Bacs hash code helps HMRC align payroll reporting with actual payments made to employees, ensuring that the amounts reported on the FPS correspond with the employee’s actual earnings. It is crucial to note that the code varies with each pay period.

It is worth mentioning that HMRC has recently stated that the decision to remove the Bacs hash code from the 2023/24 RTI FPS schema was made too late. As a result, any values provided in the schema will not be processed.

If you wish to continue providing Bacs hash values to Gateway Solver for the tax year 2023/24 onwards, you can, but they will either not be processed or retained. Bacs hash values for previous year submissions will still need to be provided for 2022/23 and previous tax years.