Reporting requirements
Reporting requirements for benefits in kind (BiKs) from April 2027.
From April 2027, the reporting process for most benefits in kind (BiKs) and expenses will be through the Full Payment Submission (FPS). This is the same process employers currently use to report salary and other employee details to HMRC when payments are made to employees. The expenses that will need to be reported on an FPS will be the same ones that are currently reported on a P11D form.
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 align with what is currently reported on the P11D and P11D(b) forms. 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 – which would be administratively burdensome for both taxpayers and HMRC.
These extra fields are listed in Annex 3. The full technical specifications were made available to payroll software providers sooner than expected in November 2025.