Updates: Mandatory payrolling of benefits in kind and expenses – interim guidance and legislation
2026
The default operation of mandatory payrolling
Benefits in kind that come under mandatory payrolling from April 2027 have been listed.
The guidance has been updated to clarify that additional FPS reporting will apply only to company cars, car fuel, vans, van fuel and private medical benefits from April 2027.
Getting ready for mandatory payrolling of benefits in kind
The voluntary registration service will be reopened in November 2026 to register to payroll all non-mandatory BiKs (including loans and accommodation) from April 2027.
New section added on corrections and adjustments.
Future updates and timeline of delivery
The delivery timeline has been updated.
Annex 1 – payrolling examples for different scenarios
New section added on payrolling medical benefit replacing the gym membership section.
Benefits in kind have been updated.
Benefits in kind have been updated for Full Payment Submission (FPS) returns from April 2027.
The phased introduction of mandatory payrolling for benefits in kind
New section announcing the phased roll out of mandatory payrolling of benefits in kind has been added.
2025
New section added.
New section added.
The default operation of mandatory payrolling
New section added.
New section added.
Getting ready for mandatory payrolling of benefits in kind
New section added.
How to report a benefit in kind in real time
New section added.
What happens when the full amount of tax cannot be collected either within a pay period or tax year
New section added.
Reporting Class 1A National Insurance contributions
New section added.
Dealing with employees who leave during the tax year
New section added.
New section added.
New section added.
Moving employees from one payroll to another
New section added.
Payment reference numbers, P60s and P45s
New section added.
Future updates and timeline of delivery
New section added.
What to do if you have questions or concerns
New section added.
Annex 1 – payrolling examples for different scenarios
New section added.
New section added.
New section added.