A major change for employers was confirmed in the 2024 Budget. Coming into effect from 6 April 2026, all employers will stop reporting benefits in kind on form P11D and will be forced to tax benefits provided to employees in real time through the payroll.
Voluntary payrolling of benefits has been around for a while, but from the start of the 2026/27 tax year, it becomes mandatory for all employers—regardless of size.
There are therefore some really important considerations for employers in terms of what you need to do to be ready for this change.
Timing will be key. Assuming the 6 April 2026 go-live date sticks you’ll need to:
- Have all relevant ready for payroll ahead of the first pay date in the 2026/27 tax year.
- Test your systems and processes.
- Communicate changes to employees well in advance.
To ensure that you remain compliant, it’s never too early to start. And to help you with this, you can check out our news article on the changes HERE.
We cover what implications are for you, what you need to be doing to prepare for this and what the all-important next steps should be.
Cooper Parry
