Mandating the reporting of benefits in kind postponed until April 2027
The introduction of mandatory payrolling for benefits in kind (BiKs) and taxable employment expenses will now be introduced from April 2027, rather than April 2026.
Payrolling of benefits is currently optional, with employers required to register before the start of the tax year for which they wish to report benefits via the payroll. The change means that Income Tax and Class 1A National Insurance due on benefits must be reported and paid via payroll software rather than through the submission of end-of-year P11D forms.
The postponement will give software providers, employers, tax agents, and other stakeholders additional time to get ready for the upcoming changes.
Employers will also be able to payroll employment-related loans and accommodation on a voluntary basis from April 2027.