Reporting requirements
Reporting requirements for benefits in kind (BiKs) from April 2027.
From April 2027, the reporting process will be through the Full Payment Submission (FPS) for the following BiKs and expenses:
- company cars
- car fuel
- vans
- van fuel
- employer-provided medical benefits
This is the same process employers currently use to report salary and other employee details to HMRC when payments are made to employees.
The FPS will be used to report the taxable values of BiKs and expenses so that both Income Tax and Class 1A National Insurance contributions can be reported in real time. Note that when we refer to reporting tax on BiKs in real time, we are referring to the fact that BiKs will have to be reported at each payroll date throughout the tax year.
The number of fields for reporting BiKs and taxable employment expenses on an FPS will be increased to include company cars, car fuel, vans, van fuel and private medical benefits. The reason for the extra fields is because HMRC will need visibility of the BiKs in the FPS to ensure that the correct tax is being reported and paid. Without this information, HMRC would need to conduct more manual compliance interventions to manage non-compliance risks. This would be administratively burdensome for both taxpayers and HMRC.
These extra fields are listed in Annex 3. The updated technical specifications are expected to be made available to payroll software providers in autumn 2026.