03/09/2026
π¨ Employers: mandatory payrolling of Benefits in Kind is coming.
From 6 April 2027, Phase 1 of mandatory payrolling will apply to:
π Company cars
β½ Car fuel
π Vans
β½ Van fuel
π₯ Medical benefits
The key change?
Tax on these benefits will be collected through payroll in real time, rather than being dealt with later through the employee's tax code.
This means employers need to make sure their payroll software, processes and employee records are ready.
But payroll isn't the only consideration.
Employees should also be told about the changes. Some may see changes to their tax code or take-home pay, and some could temporarily have tax relating to previous and current benefits being collected at the same time.
Clear communication can prevent unnecessary confusion.
At Naseems Accountants, we provide professional payroll support to help employers manage changing requirements, including payroll processing, Benefits in Kind, auto enrolment and payroll compliance.
π Is your payroll ready for April 2027? Book your FREE 30-minute consultation today.
π www.naseems.co.uk