On Apr. 28, 2025, UK HMRC issued technical note updating to main changes applicable to reporting requirements of employment related benefits in kind from Apr. 6, 2027.
Confirms mandatory payrolling introduced from April 2027 rather than April 2026.
Following feedback from external stakeholders, revision provides more time for software providers, employers, tax agents, other stakeholders to prepare for change.
Note also provides more operational information on mandatory payrolling so that businesses can adapt to these changes in time for April 2027.
On Oct. 30, UK HMRC confirmed plans on reporting of benefits in kind.
UK HMRC issued technical note describing the main changes that will apply to the reporting requirements of employment related benefits in kind from Apr. 6, 2026.
Document dated Oct. 30, 2024, was received on Nov. 27, 2024 due to a fixed feed.
This note provides further clarification for employers, agents, payroll professionals and software providers on plans for mandatory payroll reporting of benefits in kind (BiKs).
The technical note confirms that, from Apr. 2026, it will be mandatory to payroll all benefits in kind except for employment related loans and accommodation.
Payrolling for these two benefits will be introduced on a voluntary basis, also from Apr. 2026; UK GVT will set out the steps on when they will be mandated in due course.
The reporting process for BiKs will be through the Full Payment Submission (FPS).
Same process employers use to report salary and other employee details to HMRC.
Apr. 2025 Technical Note Update
On Apr. 28, 2025, UK HMRC issued technical note updating to main changes applicable to reporting requirements of employment related benefits in kind from Apr. 6, 2027.
Confirms mandatory payrolling introduced from April 2027 rather than April 2026.
Following feedback from external stakeholders, revision provides more time for software providers, employers, tax agents, other stakeholders to prepare for change.
Note also provides more operational information on mandatory payrolling so that businesses can adapt to these changes in time for April 2027.
