HMRC are now phasing in mandatory real-time reporting of income tax and class 1A National Insurance contributions for specified benefits in kind (Biks) and taxable expenses from 6 April 2027.
Company car, van, fuel and medical benefits are going to be payrolled from 6 April 2027, with all other benefits, excluding loans and accommodation, being payrolled from 6 April 2028.
Until further notice, the payrolling of loans and accommodation will remain voluntary. HMRC will continue to engage with stakeholders and industry representatives before publishing final guidance regarding phase 1 and will update its guidance with further technical information by July 2026.
ICAEW tax technical manager Adelle Greenwood said: ‘We believe this phased approach will help employers and businesses ease into mandatory payrolling of benefits from 6 April 2027, enabling commonly provided benefits with known tax values to be payrolled in the first instance, while allowing employers time to adjust their data collation and process flows for other benefits they might offer.’
