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Mandatory payrolling of benefits in kind and expenses – interim guidance and legislation

The default operation of mandatory payrolling

Real time reporting of benefits in kind and expenses from April 2027.

From 6 April 2027, employers must payroll taxable expenses, Income Tax, Class 1A National Insurance contributions and the following benefits in kind (BiKs):

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

Employers will also be able to payroll non-mandatory BiKs, such as employment-related loans and accommodation, on a voluntary basis from April 2027.