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Guidance

How to use the payrolling benefits and expenses online service

Use the payrolling benefits and expenses online service if you collect tax on benefits and expenses through your payroll.

Updates to this page

From:
HM Revenue & Customs
Published:
12 June 2014
Last updated:
6 April 2026
Show all updates

  1. Added information about changes to the rules on reporting benefits and expenses. Removed information about registering and cancelling registrations for the service, as you cannot do this any more.

  2. Added translation

  3. A link for agents to use the Payrolling Benefits in Kind online service has been added.

  4. The link to the form 'PAYE — notification of payrolled benefits' to tell us about payrolled benefits paid to your employees has been removed. You must register and use the online service.

  5. The section on Submitting electronic P11Ds has been changed because employers no longer need to use the service to send P11D’s in for payrolled employees from April 2023.

  6. From 6 April 2023, HMRC will no longer HMRC will no longer accept informal payrolling of expenses and benefits, or paper P11D forms.

  7. The address in the section on other ways to apply has been updated.

  8. HMRC's Basic PAYE Tools can now support the payrolling benefits online service.

  9. Welsh translation added.

  10. Link to further guidance on payrolling benefits in kind added.

  11. Guidance on using the new Payrolling Benefits in Kind service has been amended following feedback from users.

  12. Register now to use the new Payrolling Benefits in Kind online service. From 6 April 2016 you'll need to use this service if you want to payroll your expenses and benefits. You'll have to register for the new service by 5 April 2016 and you'll no longer have to submit P11Ds for your employees. This service replaces the current informal payrolling process.

  13. First published.

The rules on reporting benefits and expenses are changing.

You cannot change the way you report benefits and expenses for the current tax year.

You can no longer use this service to:

  • register to payroll benefits and expenses
  • cancel your registration to payroll benefits and expenses

Online service

You can only use the online service if you registered to payroll benefits and expenses before 6 April 2026.

In the service you can:

  • view benefits registered to payroll for the current tax year
  • view employees who have been excluded from a payrolled benefit
  • exclude employees from a payrolled benefit for the current tax year

If you’re an employer, use the payrolling benefits and expenses online service.

If you’re an agent, sign in to your HMRC online services account — you can access the payrolling benefits online service through the PAYE for agents online service.

Check if there are any problems with the payrolling benefits and expenses service.

How payrolling works

You can only payroll benefits that you registered to payroll before 6 April 2026.

For benefits you’re registered to payroll, you must add the cash equivalent of the employees’ benefits to their pay and then tax them through your payroll.

HMRC will make sure the value of the benefit is not included in your employees’ tax codes.

If you payroll a benefit, you:

  • do not need to use form P11D for the benefit
  • must still work out the Class 1A National Insurance contributions on benefits and complete form P11D(b)

You can exclude employees from a payrolled benefit, but you’ll need to use form P11D to declare the non-payrolled benefits. Once you’ve excluded an employee, you cannot add them back to a benefit.

You cannot payroll:

  • living accommodation provided by you as an employer
  • interest free and low interest (beneficial) loans

If you provide benefits that have not been payrolled

You will need to submit electronic P11Ds for any employees where you have provided additional benefits which have not been payrolled.

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