Policy paper

Changes to reporting of benefits in kind from April 2027

This measure is about the changes to the reporting of certain benefits in kind from April 2027.

• From: HM Revenue & Customs
• Published: 13 July 2026

Documents

Mandatory reporting of benefits in kind in Real Time Information (RTI) from April 2027

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Draft legislation

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Draft legislation (accessible version)

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Explanatory note

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Details

This measure introduces:

• mandatory reporting of benefits in kind through payroll software and Real Time Information (RTI)
• a temporary easement from penalties for certain non-deliberate inaccuracies during the first year the changes are implemented

This measure will modernise the way benefits in kind are reported and taxed by moving reporting from end-of-year processes to real-time payroll reporting.

From April 2027, mandatory payrolling will apply to:

• company cars
• car fuel
• vans and van fuel
• employer-provided medical benefits

From April 2028, mandatory payrolling will extend to most remaining benefits in kind.

Mandatory payrolling for employer-provided loans and accommodation will be confirmed at a later date.

Published 13 July 2026