23/06/2026
📢 HMRC Update: Further Delay to Mandatory Payrolling of Benefits in Kind
HMRC has announced another delay to the mandatory real-time payrolling of many Benefits in Kind (BiKs), adding further complexity for employers navigating payroll compliance.
Originally scheduled for April 2026 and later pushed back to April 2027, HMRC has now confirmed a phased approach instead:
✅ From April 2027, only the following benefits will require mandatory payrolling:
• Company cars
• Car fuel
• Vans
• Van fuel
• Employer-provided medical benefits
⏳ All other BiKs (excluding cheap loans and accommodation) will now become mandatory from April 2028.
🔄 This creates a dual reporting system, meaning employers may need to:
• Report some benefits via payroll software
• Continue reporting others through the traditional P11D process
💡 It’s worth noting that employers can still voluntarily payroll benefits ahead of the mandatory deadlines if they wish to simplify processes early.
HMRC has confirmed that updated technical guidance will be released in July, so watch this space for further detail.
✅ If the increasingly complex world of employer tax compliance has you feeling unsure, the team at Darnells are here to help—guiding you every step of the way.
📞 Totnes: 01803 862446
🌐 www.darnells.co.uk/contact/