diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 550f410..d41b82f 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -9,7 +9,7 @@ jobs:
     timeout-minutes: 30
     strategy:
       matrix:
-        python-version: ['3.10']
+        python-version: ['3.12']
         aiida-version: ['stable']
     services:
       postgres:
@@ -31,10 +31,10 @@ jobs:
           - 5672:5672
 
     steps:
-    - uses: actions/checkout@v2
+    - uses: actions/checkout@v4
 
     - name: Set up Python ${{ matrix.python-version }}
-      uses: actions/setup-python@v2
+      uses: actions/setup-python@v5
       with:
         python-version: ${{ matrix.python-version }}
 
@@ -44,7 +44,6 @@ jobs:
         pip install -r requirements.txt
         # Change plugin_name to test we're not specific to "aiida-diff"
         cookiecutter --no-input . plugin_name=${PLUGIN_NAME}
-        pip install -e ${PLUGIN_NAME}[testing]
       env:
         PLUGIN_NAME: aiida-ck
 
@@ -55,17 +54,17 @@ jobs:
         PLUGIN_NAME: aiida-ck
       run: |
         cd ${PLUGIN_NAME}
-        pytest -v
+        hatch test -v
 
   docs:
     runs-on: ubuntu-latest
     timeout-minutes: 15
     steps:
-    - uses: actions/checkout@v2
-    - name: Set up Python 3.10
-      uses: actions/setup-python@v2
+    - uses: actions/checkout@v4
+    - name: Set up Python 3.12
+      uses: actions/setup-python@v5
       with:
-        python-version: "3.10"
+        python-version: "3.12"
     - name: Install python dependencies
       env:
         PLUGIN_NAME: aiida-ck
@@ -74,21 +73,22 @@ jobs:
         pip install -r requirements.txt
         # Change plugin_name to test we're not specific to "aiida-diff"
         cookiecutter --no-input . plugin_name=${PLUGIN_NAME}
-        pip install -e ${PLUGIN_NAME}[docs]
     - name: Build docs
       env:
         PLUGIN_NAME: aiida-ck
-      run: cd ${PLUGIN_NAME}/docs && make
+      run: |
+        cd ${PLUGIN_NAME}
+        hatch run docs:build
 
-  pre-commit:
+  static-analysis:
     runs-on: ubuntu-latest
     timeout-minutes: 15
     steps:
-    - uses: actions/checkout@v2
-    - name: Set up Python 3.10
-      uses: actions/setup-python@v2
+    - uses: actions/checkout@v4
+    - name: Set up Python 3.12
+      uses: actions/setup-python@v5
       with:
-        python-version: "3.10"
+        python-version: "3.12"
     - name: Install python dependencies
       env:
         PLUGIN_NAME: aiida-ck
@@ -97,13 +97,9 @@ jobs:
         pip install -r requirements.txt
         # Change plugin_name to test we're not specific to "aiida-diff"
         cookiecutter --no-input . plugin_name=${PLUGIN_NAME}
-        pip install -e ${PLUGIN_NAME}[pre-commit,docs,testing]
-    - name: Run pre-commit
+    - name: Run formatter and linter
       env:
         PLUGIN_NAME: aiida-ck
       run: |
         cd ${PLUGIN_NAME}
-        git init
-        git add -A
-        pre-commit install
-        pre-commit run --all-files || ( git status --short ; git diff ; exit 1 )
+        hatch fmt
diff --git a/hooks/post_gen_project.sh b/hooks/post_gen_project.sh
index c12ffdc..71bd95f 100644
--- a/hooks/post_gen_project.sh
+++ b/hooks/post_gen_project.sh
@@ -1,9 +1,11 @@
 #!/bin/bash
-if [ -x "$(command -v black)" ]; then
-    echo "Running black on {{ cookiecutter.plugin_name }}"
-    black '../{{ cookiecutter.plugin_name }}/'
+if [ -x "$(command -v hatch)" ]; then
+    echo "Running hatch on {{ cookiecutter.plugin_name }}"
+    # For some reason we need to invoke the formatting twice to be effective
+    hatch fmt || true
+    hatch fmt || true
 else
-    echo "black not found. 'pip install black' to automatically \
+    echo "hatch not found. 'pip install hatch' to automatically \
           run formatter on {{ cookiecutter.plugin_name }}"
 fi
 
diff --git a/requirements.txt b/requirements.txt
index 92e49d5..18a2a75 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,2 +1,2 @@
 cookiecutter
-black==22.12.0
+hatch~=1.12.0
diff --git a/tox.ini b/tox.ini
index 8435db0..68886d1 100644
--- a/tox.ini
+++ b/tox.ini
@@ -19,4 +19,4 @@ commands =
     cookiecutter --no-input . plugin_name={env:PLUGIN_NAME}
     git init -b main {env:PLUGIN_NAME}
     cd {env:PLUGIN_NAME} && git add -A
-    pip install -e {env:PLUGIN_NAME}[testing,docs,pre-commit]
+    pip install -e {env:PLUGIN_NAME}
diff --git a/update-aiida-diff.sh b/update-aiida-diff.sh
index d561494..7f57ac1 100755
--- a/update-aiida-diff.sh
+++ b/update-aiida-diff.sh
@@ -11,8 +11,3 @@ else
 fi
 
 cookiecutter --no-input -f . version=1.2.0
-pip install -e aiida-diff[docs,pre-commit,testing]
-cd aiida-diff
-git init && git add -A
-pre-commit install
-pre-commit run
diff --git a/update-template-formatting.sh b/update-template-formatting.sh
new file mode 100755
index 0000000..3ea2149
--- /dev/null
+++ b/update-template-formatting.sh
@@ -0,0 +1,29 @@
+#!/bin/bash
+# Creates plugin cutter with unique labels so we can format and then reverses
+# the ids to the cookiecutter identifiers and git apply the diff
+set -e
+
+# clean directory contents if exist (but don't delete .git directory)
+if [ -d aiida-diff ]; then
+  rm -rf cookiecutter_plugin_name
+fi
+cookiecutter --accept-hooks no --no-input -f . plugin_name=cookiecutter_plugin_name module_name=cookiecutter_module_name short_description=cookiecutter_short_description entry_point_prefix=cookiecutter_entry_point_prefix version=0.0.0-dev author=cookiecutter_author year=cookiecutter_year
+
+cd cookiecutter_plugin_name
+git init && git add -A && git commit -am 'init'
+hatch fmt || true
+# takes the diff and applies it on the cookie cutter template
+git diff > patch
+cp patch ..
+cd ..
+# git diff replacements of specified labels with cookiecutter identifiers
+sed -i 's/ a\// a\/\{\{cookiecutter.plugin_name\}\}\//g' patch
+sed -i 's/ b\// b\/\{\{cookiecutter.plugin_name\}\}\//g' patch
+sed -i 's/cookiecutter_plugin_name/\{\{cookiecutter.plugin_name\}\}/g' patch
+sed -i 's/cookiecutter_module_name/\{\{cookiecutter.module_name\}\}/g' patch
+sed -i 's/cookiecutter_entry_point_prefix/\{\{cookiecutter.entry_point_prefix\}\}/g' patch
+sed -i 's/cookiecutter_short_description/\{\{cookiecutter.short_description\}\}/g' patch
+sed -i 's/0\.0\.0-dev/\{\{cookiecutter.version\}\}/g' patch
+sed -i 's/cookiecutter_author/\{\{cookiecutter.author\}\}/g' patch
+sed -i 's/cookiecutter_year/\{\{cookiecutter.year\}\}/g' patch
+git apply --reject --whitespace=fix patch
diff --git a/{{cookiecutter.plugin_name}}/.github/install_aiida_github.sh b/{{cookiecutter.plugin_name}}/.github/install_aiida_github.sh
deleted file mode 100755
index dc56b09..0000000
--- a/{{cookiecutter.plugin_name}}/.github/install_aiida_github.sh
+++ /dev/null
@@ -1,6 +0,0 @@
-#!/bin/bash
-git clone https://github.com/aiidateam/aiida_core ../aiida_core
-cd ../aiida_core
-git checkout $AIIDA_DEVELOP_GIT_HASH
-pip install -e .[docs,pre-commit,testing]
-cd ${TRAVIS_BUILD_DIR}
diff --git a/{{cookiecutter.plugin_name}}/.github/workflows/ci.yml b/{{cookiecutter.plugin_name}}/.github/workflows/ci.yml
index 7e7278c..eb85c6f 100644
--- a/{{cookiecutter.plugin_name}}/.github/workflows/ci.yml
+++ b/{{cookiecutter.plugin_name}}/.github/workflows/ci.yml
@@ -1,6 +1,11 @@
 name: ci
 
-on: [push, pull_request]
+on:
+  push:
+    # only pushes to main trigger
+    branches: [main]
+  pull_request:
+    # always triggered
 
 jobs:
 
@@ -9,7 +14,7 @@ jobs:
     timeout-minutes: 30
     strategy:
       matrix:
-        python-version: ['3.10']
+        python-version: ['3.12']
         aiida-version: ['stable']
 
     services:
@@ -32,54 +37,49 @@ jobs:
           - 5672:5672
 
     steps:
-    - uses: actions/checkout@v2
+    - uses: actions/checkout@v4
 
     - name: Set up Python ${{ '{{ matrix.python-version }}' }}
-      uses: actions/setup-python@v2
+      uses: actions/setup-python@v5
       with:
         python-version: ${{ '{{ matrix.python-version }}' }}
-
-    - name: Install python dependencies
+    - name: Install project manager
       run: |
-        pip install --upgrade pip
-        pip install -e .[testing]
-
+        pip install hatch
     - name: Run test suite
       env:
-        # show timings of tests
         PYTEST_ADDOPTS: "--durations=0"
-      run: pytest --cov {{cookiecutter.module_name}} --cov-append .
+      run: |
+        hatch test --cover
 
   docs:
     runs-on: ubuntu-latest
     timeout-minutes: 15
     steps:
-    - uses: actions/checkout@v2
-    - name: Set up Python 3.10
-      uses: actions/setup-python@v2
+    - uses: actions/checkout@v4
+    - name: Set up Python ${{ '{{ matrix.python-version }}' }}
+      uses: actions/setup-python@v5
       with:
-        python-version: "3.10"
-    - name: Install python dependencies
+        python-version: ${{ '{{ matrix.python-version }}' }}
+    - name: Install project manager
       run: |
-        pip install --upgrade pip
-        pip install -e .[docs]
+        pip install hatch
     - name: Build docs
-      run: cd docs && make
+      run: |
+        hatch run docs:build
 
-  pre-commit:
+  static-analysis:
     runs-on: ubuntu-latest
     timeout-minutes: 15
     steps:
-    - uses: actions/checkout@v2
-    - name: Set up Python 3.10
-      uses: actions/setup-python@v2
+    - uses: actions/checkout@v4
+    - name: Set up Python ${{ '{{ matrix.python-version }}' }}
+      uses: actions/setup-python@v5
       with:
-        python-version: "3.10"
-    - name: Install python dependencies
+        python-version: ${{ '{{ matrix.python-version }}' }}
+    - name: Install project manager
       run: |
-        pip install --upgrade pip
-        pip install -e .[pre-commit,docs,testing]
-    - name: Run pre-commit
+        pip install hatch
+    - name: Run formatter and linter
       run: |
-        pre-commit install
-        pre-commit run --all-files || ( git status --short ; git diff ; exit 1 )
+        hatch fmt --check
diff --git a/{{cookiecutter.plugin_name}}/.github/workflows/publish-on-pypi.yml b/{{cookiecutter.plugin_name}}/.github/workflows/publish-on-pypi.yml
index 75088d5..97268e5 100644
--- a/{{cookiecutter.plugin_name}}/.github/workflows/publish-on-pypi.yml
+++ b/{{cookiecutter.plugin_name}}/.github/workflows/publish-on-pypi.yml
@@ -15,19 +15,19 @@ jobs:
     - name: Checkout repository
       uses: actions/checkout@v2
 
-    - name: Set up Python 3.10
-      uses: actions/setup-python@v1
+    - name: Set up Python 3.12
+      uses: actions/setup-python@v5
       with:
-        python-version: '3.10'
+        python-version: '3.12'
 
-    - name: Install flit
+    - name: Install hatch
       run: |
         python -m pip install --upgrade pip
-        python -m pip install flit~=3.4
+        python -m pip install hatch~=1.12.0
 
     - name: Build and publish
       run: |
-        flit publish
+        hatch publish
       env:
-        FLIT_USERNAME: __token__
-        FLIT_PASSWORD:  ${{ '{{ secrets.pypi_token }}' }}
+        HATCH_INDEX_USER: __token__
+        HATCH_INDEX_AUTH:  ${{ '{{ secrets.pypi_token }}' }}
diff --git a/{{cookiecutter.plugin_name}}/.pre-commit-config.yaml b/{{cookiecutter.plugin_name}}/.pre-commit-config.yaml
index ad3236b..4d839fd 100644
--- a/{{cookiecutter.plugin_name}}/.pre-commit-config.yaml
+++ b/{{cookiecutter.plugin_name}}/.pre-commit-config.yaml
@@ -1,39 +1,13 @@
-# Install pre-commit hooks via:
-# pre-commit install
 repos:
-- repo: https://github.com/pre-commit/pre-commit-hooks
-  rev: v4.4.0
-  hooks:
-    - id: end-of-file-fixer
-    - id: mixed-line-ending
-    - id: trailing-whitespace
-    - id: check-json
-
-- repo: https://github.com/asottile/pyupgrade
-  rev: v3.3.1
-  hooks:
-  - id: pyupgrade
-    args: ["--py37-plus"]
-
-- repo: https://github.com/PyCQA/isort
-  rev: 5.12.0
-  hooks:
-    - id: isort
-
-- repo: https://github.com/psf/black
-  rev: 22.12.0
-  hooks:
-    - id: black
-
 - repo: local
   hooks:
-  - id: pylint
+  - id: format
+    name: format
+    entry: hatch fmt -f
+    language: system
+    types: [python]
+  - id: lint
+    name: lint
+    entry: hatch fmt -l
     language: system
-    types: [file, python]
-    name: pylint
-    description: "This hook runs the pylint static code analyzer"
-    exclude: &exclude_files >
-      (?x)^(
-          docs/.*|
-      )$
-    entry: pylint
+    types: [python]
diff --git a/{{cookiecutter.plugin_name}}/CONTRIBUTING.md b/{{cookiecutter.plugin_name}}/CONTRIBUTING.md
new file mode 100644
index 0000000..9292117
--- /dev/null
+++ b/{{cookiecutter.plugin_name}}/CONTRIBUTING.md
@@ -0,0 +1,52 @@
+### Tests
+
+Tests can be run in different ways
+```
+hatch test # Run tests whith your current python version 
+hatch test --python 3.9 # Run tests for python version 3.9
+hatch test --show # See all defined test environment
+hatch test --all # Run tests for all test environments 
+hatch test --coverage # Run tests with coverage
+```
+You can add arbitrary flags to pytest at the end of the command. For example to run the tests in debug mode use
+```
+hatch test --pdb 
+```
+We use ipdb as debugger backend for autocompletion.
+
+### Static code analysis
+
+To check the formatting and linting run
+```
+hatch fmt --check
+```
+If you want to automatically fix errors that are fixable run
+```
+hatch fmt
+```
+If you want to run this command before each commit, please install the pre-commit hook
+```
+pip install .[pre-commit]
+pre-commit install
+```
+You can also run the linter and formatter separately
+```
+hatch fmt --formatter
+hatch fmt --linter
+```
+
+### Building the docs
+
+Please run
+```
+hatch run docs:build
+```
+
+### Build and publishing package
+
+To build and publish a package please use
+```
+hatch build
+hatch publish -r test # test pypi
+hatch publish # pypi
+```
diff --git a/{{cookiecutter.plugin_name}}/conftest.py b/{{cookiecutter.plugin_name}}/conftest.py
index 74752a2..e696b9d 100644
--- a/{{cookiecutter.plugin_name}}/conftest.py
+++ b/{{cookiecutter.plugin_name}}/conftest.py
@@ -1,4 +1,5 @@
 """pytest fixtures for simplified testing."""
+
 import pytest
 
 pytest_plugins = ["aiida.manage.tests.pytest_fixtures"]
diff --git a/{{cookiecutter.plugin_name}}/docs/source/conf.py b/{{cookiecutter.plugin_name}}/docs/source/conf.py
index 6a6a582..522cf1c 100755
--- a/{{cookiecutter.plugin_name}}/docs/source/conf.py
+++ b/{{cookiecutter.plugin_name}}/docs/source/conf.py
@@ -14,15 +14,14 @@
 import sys
 import time
 
+import {{cookiecutter.module_name}}
 from aiida import load_profile
 from aiida.storage.sqlite_temp import SqliteTempBackend
 
-import {{cookiecutter.module_name}}
-
 # -- AiiDA-related setup --------------------------------------------------
 
 # Load AiiDA profile
-temp_profile = SqliteTempBackend.create_profile('temp-profile')
+temp_profile = SqliteTempBackend.create_profile("temp-profile")
 load_profile(temp_profile, allow_switch=True)
 
 # -- General configuration ------------------------------------------------
@@ -68,9 +67,7 @@
 
 current_year = str(time.localtime().tm_year)
 copyright_year_string = (
-    current_year
-    if current_year == copyright_first_year
-    else f"{copyright_first_year}-{current_year}"
+    current_year if current_year == copyright_first_year else f"{copyright_first_year}-{current_year}"
 )
 # pylint: disable=redefined-builtin
 copyright = f"{copyright_year_string}, {copyright_owners}. All rights reserved"
@@ -185,6 +182,7 @@
 # We should ignore any python built-in exception, for instance
 nitpick_ignore = [
     ("py:class", "Logger"),
+    ("py:class", "QbFields"),  # Warning started to appear with aiida 2.6
 ]
 
 
@@ -198,7 +196,7 @@ def run_apidoc(_):
     """
     source_dir = os.path.abspath(os.path.dirname(__file__))
     apidoc_dir = os.path.join(source_dir, "apidoc")
-    package_dir = os.path.join(source_dir, os.pardir, os.pardir, "{{cookiecutter.module_name}}")
+    package_dir = os.path.join(source_dir, os.pardir, os.pardir, "src", "{{cookiecutter.module_name}}")
 
     # In #1139, they suggest the route below, but this ended up
     # calling sphinx-build, not sphinx-apidoc
@@ -223,9 +221,7 @@ def run_apidoc(_):
 
     # See https://stackoverflow.com/a/30144019
     env = os.environ.copy()
-    env[
-        "SPHINX_APIDOC_OPTIONS"
-    ] = "members,special-members,private-members,undoc-members,show-inheritance"
+    env["SPHINX_APIDOC_OPTIONS"] = "members,special-members,private-members,undoc-members,show-inheritance"
     subprocess.check_call([cmd_path] + options, env=env)
 
 
diff --git a/{{cookiecutter.plugin_name}}/examples/example_01.py b/{{cookiecutter.plugin_name}}/examples/example_01.py
index 85e2d4b..a9ec4df 100644
--- a/{{cookiecutter.plugin_name}}/examples/example_01.py
+++ b/{{cookiecutter.plugin_name}}/examples/example_01.py
@@ -3,13 +3,12 @@
 
 Usage: ./example_01.py
 """
+
 from os import path
 
 import click
-
 from aiida import cmdline, engine
 from aiida.plugins import CalculationFactory, DataFactory
-
 from {{cookiecutter.module_name}} import helpers
 
 INPUT_DIR = path.join(path.dirname(path.realpath(__file__)), "input_files")
@@ -23,15 +22,17 @@ def test_run({{cookiecutter.entry_point_prefix}}_code):
     if not {{cookiecutter.entry_point_prefix}}_code:
         # get code
         computer = helpers.get_computer()
-        {{cookiecutter.entry_point_prefix}}_code = helpers.get_code(entry_point="{{cookiecutter.entry_point_prefix}}", computer=computer)
+        {{cookiecutter.entry_point_prefix}}_code = helpers.get_code(
+            entry_point="{{cookiecutter.entry_point_prefix}}", computer=computer
+        )
 
     # Prepare input parameters
-    DiffParameters = DataFactory("{{cookiecutter.entry_point_prefix}}")
-    parameters = DiffParameters({"ignore-case": True})
+    diff_parameters = DataFactory("{{cookiecutter.entry_point_prefix}}")
+    parameters = diff_parameters({"ignore-case": True})
 
-    SinglefileData = DataFactory("core.singlefile")
-    file1 = SinglefileData(file=path.join(INPUT_DIR, "file1.txt"))
-    file2 = SinglefileData(file=path.join(INPUT_DIR, "file2.txt"))
+    singlefile_data = DataFactory("core.singlefile")
+    file1 = singlefile_data(file=path.join(INPUT_DIR, "file1.txt"))
+    file2 = singlefile_data(file=path.join(INPUT_DIR, "file2.txt"))
 
     # set up calculation
     inputs = {
diff --git a/{{cookiecutter.plugin_name}}/pyproject.toml b/{{cookiecutter.plugin_name}}/pyproject.toml
index 45d78c0..d55889f 100644
--- a/{{cookiecutter.plugin_name}}/pyproject.toml
+++ b/{{cookiecutter.plugin_name}}/pyproject.toml
@@ -1,12 +1,11 @@
 [build-system]
-# build the package with [flit](https://flit.readthedocs.io)
-requires = ["flit_core >=3.4,<4"]
-build-backend = "flit_core.buildapi"
+requires = ["hatchling"]
+build-backend = "hatchling.build"
 
 [project]
 # See https://www.python.org/dev/peps/pep-0621/
 name = "{{cookiecutter.plugin_name}}"
-dynamic = ["version"]  # read from {{cookiecutter.module_name}}/__init__.py
+dynamic = ["version"]  # read from {{cookiecutter.module_name}}/src/__init__.py
 description = "{{cookiecutter.short_description}}"
 {%- if cookiecutter.contact_email %}
 authors = [{name = "{{cookiecutter.author}}", email = "{{cookiecutter.contact_email}}"}]
@@ -24,26 +23,15 @@ classifiers = [
     "Framework :: AiiDA"
 ]
 keywords = ["aiida", "plugin"]
-requires-python = ">=3.7"
+requires-python = ">=3.9"
 dependencies = [
     "aiida-core>={{cookiecutter.aiida_min_version}},<3",
     "voluptuous"
 ]
 
-[project.urls]
-Source = "https://github.com/{{cookiecutter.github_user}}/{{cookiecutter.repo_name}}"
-
 [project.optional-dependencies]
-testing = [
-    "pgtest~=1.3.1",
-    "wheel~=0.31",
-    "coverage[toml]",
-    "pytest~=6.0",
-    "pytest-cov"
-]
 pre-commit = [
-    "pre-commit~=2.2",
-    "pylint~=2.15.10"
+  'pre-commit~=3.5',
 ]
 docs = [
     "sphinx",
@@ -53,6 +41,9 @@ docs = [
     "markupsafe<2.1"
 ]
 
+[project.urls]
+Source = "https://github.com/{{cookiecutter.github_user}}/{{cookiecutter.repo_name}}"
+
 [project.entry-points."aiida.data"]
 "{{cookiecutter.entry_point_prefix}}" = "{{cookiecutter.module_name}}.data:DiffParameters"
 
@@ -65,22 +56,10 @@ docs = [
 [project.entry-points."aiida.cmdline.data"]
 "{{cookiecutter.entry_point_prefix}}" = "{{cookiecutter.module_name}}.cli:data_cli"
 
-[tool.flit.module]
-name = "{{cookiecutter.module_name}}"
-
-[tool.pylint.format]
-max-line-length = 125
-
-[tool.pylint.messages_control]
-disable = [
-    "too-many-ancestors",
-    "invalid-name",
-    "duplicate-code",
-]
-
 [tool.pytest.ini_options]
 # Configuration for [pytest](https://docs.pytest.org)
 python_files = "test_*.py example_*.py"
+addopts = "--pdbcls=IPython.terminal.debugger:TerminalPdb"
 filterwarnings = [
     "ignore::DeprecationWarning:aiida:",
     "ignore:Creating AiiDA configuration folder:",
@@ -88,39 +67,84 @@ filterwarnings = [
     "ignore::DeprecationWarning:yaml:",
 ]
 
+
 [tool.coverage.run]
 # Configuration of [coverage.py](https://coverage.readthedocs.io)
 # reporting which lines of your plugin are covered by tests
-source=["{{cookiecutter.module_name}}"]
-
-[tool.isort]
-# Configuration of [isort](https://isort.readthedocs.io)
-line_length = 120
-force_sort_within_sections = true
-sections = ['FUTURE', 'STDLIB', 'THIRDPARTY', 'AIIDA', 'FIRSTPARTY', 'LOCALFOLDER']
-known_aiida = ['aiida']
-
-[tool.tox]
-legacy_tox_ini = """
-[tox]
-envlist = py38
-
-[testenv]
-usedevelop=True
-
-[testenv:py{37,38,39,310}]
-description = Run the test suite against a python version
-extras = testing
-commands = pytest {posargs}
-
-[testenv:pre-commit]
-description = Run the pre-commit checks
-extras = pre-commit
-commands = pre-commit run {posargs}
-
-[testenv:docs]
-description = Build the documentation
-extras = docs
-commands = sphinx-build -nW --keep-going -b html {posargs} docs/source docs/build/html
-commands_post = echo "open file://{toxinidir}/docs/build/html/index.html"
-"""
+source = ["src/{{cookiecutter.module_name}}"]
+
+[tool.ruff]
+line-length = 120
+
+[tool.ruff.lint]
+ignore = [
+  'F403',  # Star imports unable to detect undefined names
+  'F405',  # Import may be undefined or defined from star imports
+  'PLR0911',  # Too many return statements
+  'PLR0912',  # Too many branches
+  'PLR0913',  # Too many arguments in function definition
+  'PLR0915',  # Too many statements
+  'PLR2004',  # Magic value used in comparison
+  'RUF005',  # Consider iterable unpacking instead of concatenation
+  'RUF012'  # Mutable class attributes should be annotated with `typing.ClassVar`
+]
+select = [
+  'E',  # pydocstyle
+  'W',  # pydocstyle
+  'F',  # pyflakes
+  'I',  # isort
+  'N',  # pep8-naming
+  'PLC',  # pylint-convention
+  'PLE',  # pylint-error
+  'PLR',  # pylint-refactor
+  'PLW',  # pylint-warning
+  'RUF'  # ruff
+]
+
+## Hatch configurations
+
+[tool.hatch.version]
+path = "src/{{cookiecutter.module_name}}/__init__.py"
+
+[tool.hatch.envs.hatch-test]
+dependencies = [
+    'pgtest~=1.3,>=1.3.1',
+    'coverage~=7.0',
+    'pytest~=7.0',
+    "pytest-cov~=4.1",
+    "ipdb"
+]
+
+[tool.hatch.envs.hatch-test.scripts]
+# These are the efault scripts provided by hatch.
+# The have been copied to make the execution more transparent
+
+# This command is run with the command `hatch test`
+run = "pytest{env:HATCH_TEST_ARGS:} {args}"
+# The three commands below are run with the command `hatch test --coverage`
+run-cov = "coverage run -m pytest{env:HATCH_TEST_ARGS:} {args}"
+cov-combine = "coverage combine"
+cov-report = "coverage report"
+
+[[tool.hatch.envs.hatch-test.matrix]]
+python = ["3.9", "3.10", "3.11", "3.12"]
+
+[tool.hatch.envs.hatch-static-analysis]
+dependencies = ["ruff==0.4.3"]
+
+[tool.hatch.envs.hatch-static-analysis.scripts]
+# Fixes are executed with `hatch fmt`.
+# Checks are executed with `hatch fmt --check`.
+
+format-check = "ruff format --check --config pyproject.toml {args:.}"
+format-fix = "ruff format --config pyproject.toml {args:.}"
+lint-check = "ruff check --config pyproject.toml {args:.}"
+lint-fix = "ruff check --config pyproject.toml --fix --exit-non-zero-on-fix --show-fixes {args:.}"
+
+[tool.hatch.envs.docs]
+features = ["docs"]
+
+[tool.hatch.envs.docs.scripts]
+build = [
+  "make -C docs"
+]
diff --git a/{{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/__init__.py b/{{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/__init__.py
similarity index 100%
rename from {{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/__init__.py
rename to {{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/__init__.py
diff --git a/{{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/calculations.py b/{{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/calculations.py
similarity index 88%
rename from {{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/calculations.py
rename to {{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/calculations.py
index 8a4495c..7574183 100644
--- a/{{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/calculations.py
+++ b/{{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/calculations.py
@@ -3,6 +3,7 @@
 
 Register calculations via the "aiida.calculations" entry point in setup.json.
 """
+
 from aiida.common import datastructures
 from aiida.engine import CalcJob
 from aiida.orm import SinglefileData
@@ -31,20 +32,14 @@ def define(cls, spec):
         spec.inputs["metadata"]["options"]["parser_name"].default = "{{cookiecutter.entry_point_prefix}}"
 
         # new ports
-        spec.input(
-            "metadata.options.output_filename", valid_type=str, default="patch.diff"
-        )
+        spec.input("metadata.options.output_filename", valid_type=str, default="patch.diff")
         spec.input(
             "parameters",
             valid_type=DiffParameters,
             help="Command line parameters for diff",
         )
-        spec.input(
-            "file1", valid_type=SinglefileData, help="First file to be compared."
-        )
-        spec.input(
-            "file2", valid_type=SinglefileData, help="Second file to be compared."
-        )
+        spec.input("file1", valid_type=SinglefileData, help="First file to be compared.")
+        spec.input("file2", valid_type=SinglefileData, help="Second file to be compared.")
         spec.output(
             "{{cookiecutter.entry_point_prefix}}",
             valid_type=SinglefileData,
diff --git a/{{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/cli.py b/{{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/cli.py
similarity index 91%
rename from {{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/cli.py
rename to {{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/cli.py
index d4ce642..fe56b5e 100644
--- a/{{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/cli.py
+++ b/{{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/cli.py
@@ -5,10 +5,10 @@
 directly into the 'verdi' command by using AiiDA-specific entry points like
 "aiida.cmdline.data" (both in the setup.json file).
 """
+
 import sys
 
 import click
-
 from aiida.cmdline.commands.cmd_data import verdi_data
 from aiida.cmdline.params.types import DataParamType
 from aiida.cmdline.utils import decorators
@@ -28,16 +28,16 @@ def list_():  # pylint: disable=redefined-builtin
     """
     Display all DiffParameters nodes
     """
-    DiffParameters = DataFactory("{{cookiecutter.entry_point_prefix}}")
+    diff_parameters = DataFactory("{{cookiecutter.entry_point_prefix}}")
 
     qb = QueryBuilder()
-    qb.append(DiffParameters)
+    qb.append(diff_parameters)
     results = qb.all()
 
     s = ""
     for result in results:
         obj = result[0]
-        s += f"{str(obj)}, pk: {obj.pk}\n"
+        s += f"{obj!s}, pk: {obj.pk}\n"
     sys.stdout.write(s)
 
 
diff --git a/{{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/data/__init__.py b/{{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/data/__init__.py
similarity index 98%
rename from {{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/data/__init__.py
rename to {{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/data/__init__.py
index f2aa313..2b39992 100644
--- a/{{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/data/__init__.py
+++ b/{{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/data/__init__.py
@@ -1,13 +1,12 @@
-"""
-Data types provided by plugin
+"""Data types provided by plugin
 
 Register data types via the "aiida.data" entry point in setup.json.
 """
+
 # You can directly use or subclass aiida.orm.data.Data
 # or any other data type listed under 'verdi data'
-from voluptuous import Optional, Schema
-
 from aiida.orm import Dict
+from voluptuous import Optional, Schema
 
 # A subset of diff's command line options
 cmdline_options = {
diff --git a/{{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/helpers.py b/{{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/helpers.py
similarity index 97%
rename from {{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/helpers.py
rename to {{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/helpers.py
index 981a066..6c693cf 100644
--- a/{{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/helpers.py
+++ b/{{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/helpers.py
@@ -1,4 +1,4 @@
-""" Helper functions for automatically setting up computer & code.
+"""Helper functions for automatically setting up computer & code.
 Helper functions for setting up
 
  1. An AiiDA localhost computer
@@ -7,6 +7,7 @@
 Note: Point 2 is made possible by the fact that the ``diff`` executable is
 available in the PATH on almost any UNIX system.
 """
+
 import shutil
 import tempfile
 
diff --git a/{{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/parsers.py b/{{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/parsers.py
similarity index 93%
rename from {{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/parsers.py
rename to {{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/parsers.py
index f78ef20..3e040d3 100644
--- a/{{cookiecutter.plugin_name}}/{{cookiecutter.module_name}}/parsers.py
+++ b/{{cookiecutter.plugin_name}}/src/{{cookiecutter.module_name}}/parsers.py
@@ -3,6 +3,7 @@
 
 Register parsers via the "aiida.parsers" entry point in setup.json.
 """
+
 from aiida.common import exceptions
 from aiida.engine import ExitCode
 from aiida.orm import SinglefileData
@@ -43,9 +44,7 @@ def parse(self, **kwargs):
         files_expected = [output_filename]
         # Note: set(A) <= set(B) checks whether A is a subset of B
         if not set(files_expected) <= set(files_retrieved):
-            self.logger.error(
-                f"Found files '{files_retrieved}', expected to find '{files_expected}'"
-            )
+            self.logger.error(f"Found files '{files_retrieved}', expected to find '{files_expected}'")
             return self.exit_codes.ERROR_MISSING_OUTPUT_FILES
 
         # add output file
diff --git a/{{cookiecutter.plugin_name}}/tests/__init__.py b/{{cookiecutter.plugin_name}}/tests/__init__.py
index 94cbb42..484b467 100644
--- a/{{cookiecutter.plugin_name}}/tests/__init__.py
+++ b/{{cookiecutter.plugin_name}}/tests/__init__.py
@@ -1,8 +1,9 @@
-""" Tests for the plugin.
+"""Tests for the plugin.
 
 Includes both tests written in unittest style (test_cli.py) and tests written
 in pytest style (test_calculations.py).
 """
+
 import os
 
 TEST_DIR = os.path.dirname(os.path.realpath(__file__))
diff --git a/{{cookiecutter.plugin_name}}/tests/test_calculations.py b/{{cookiecutter.plugin_name}}/tests/test_calculations.py
index 1d5f3cc..0bfdd90 100644
--- a/{{cookiecutter.plugin_name}}/tests/test_calculations.py
+++ b/{{cookiecutter.plugin_name}}/tests/test_calculations.py
@@ -1,4 +1,5 @@
-""" Tests for calculations."""
+"""Tests for calculations."""
+
 import os
 
 from aiida.engine import run
@@ -13,8 +14,8 @@ def test_process({{cookiecutter.entry_point_prefix}}_code):
     note this does not test that the expected outputs are created of output parsing"""
 
     # Prepare input parameters
-    DiffParameters = DataFactory("{{cookiecutter.entry_point_prefix}}")
-    parameters = DiffParameters({"ignore-case": True})
+    diff_parameters = DataFactory("{{cookiecutter.entry_point_prefix}}")
+    parameters = diff_parameters({"ignore-case": True})
 
     file1 = SinglefileData(file=os.path.join(TEST_DIR, "input_files", "file1.txt"))
     file2 = SinglefileData(file=os.path.join(TEST_DIR, "input_files", "file2.txt"))
diff --git a/{{cookiecutter.plugin_name}}/tests/test_cli.py b/{{cookiecutter.plugin_name}}/tests/test_cli.py
index a5099fa..afbd24b 100644
--- a/{{cookiecutter.plugin_name}}/tests/test_cli.py
+++ b/{{cookiecutter.plugin_name}}/tests/test_cli.py
@@ -1,8 +1,7 @@
-""" Tests for command line interface."""
-from click.testing import CliRunner
+"""Tests for command line interface."""
 
 from aiida.plugins import DataFactory
-
+from click.testing import CliRunner
 from {{cookiecutter.module_name}}.cli import export, list_
 
 
@@ -12,8 +11,8 @@ class TestDataCli:
 
     def setup_method(self):
         """Prepare nodes for cli tests."""
-        DiffParameters = DataFactory("{{cookiecutter.entry_point_prefix}}")
-        self.parameters = DiffParameters({"ignore-case": True})
+        diff_parameters = DataFactory("{{cookiecutter.entry_point_prefix}}")
+        self.parameters = diff_parameters({"ignore-case": True})
         self.parameters.store()
         self.runner = CliRunner()
 
@@ -31,7 +30,5 @@ def test_data_diff_export(self):
         Tests that it can be reached and that it shows the contents of the node
         we have set up.
         """
-        result = self.runner.invoke(
-            export, [str(self.parameters.pk)], catch_exceptions=False
-        )
+        result = self.runner.invoke(export, [str(self.parameters.pk)], catch_exceptions=False)
         assert "ignore-case" in result.output