News
Mandating the Payrolling of Benefits in Kind Delayed Until 06 April 2027
30 - 04 - 2025
Mandating the payrolling of expenses and benefits-in-kind has been delayed
to 6th April 2027.
HMRC has announced additional time to prepare for the reporting
of Income Tax and Class 1A NICs for most benefits in kind and taxable expenses.
Originally due to be mandatory from 6 April 2026, HMRC’s latest technical note
confirms that the changes will take place from 06 April 2027.
Payrolling Benefits in Kind enables the reporting of most employee benefits
through Real Time Information (RTI). The value of a benefit is added to the
employee’s salary so that the correct amount of PAYE is automatically deducted
during the tax year. The new system would eliminate the need to produce and
file P11D forms for employees after the payroll year end.
Since April 2016 it has been possible for employers to use
the system on a voluntary basis.
