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Get Ahead or Get Caught: Payrolling Benefits Becomes Law in 2027
Southern Payroll Solutions
Payroll Consultant
As you may be aware, HMRC had plans to make payrolling of benefits mandatory from 6th April 2026. These plans have fallen through, and as it stands, they’ve now pushed this back to April 2027.
For those that wanted to voluntarily payroll benefits from the 2025/26 Tax Year, the deadline for setting this up has well and truly gone. This means you’ll still need to complete P11Ds at the close of the Tax Year next year!
However, if you were lucky enough to sign up to payroll your benefits from April 2025, whilst you won’t need to complete P11Ds for your employees, you as the employer will still need to complete and submit the P11D(b) to account for the Class 1A National Insurance Contributions.
All benefits are payrolled - Only employer P11D(b) required
Some benefits are payrolled - A P11D would be required for non-payrolled benefits and a P11D(b) is required for all benefits.
If you want to volunteer for Payrolling Benefits for the next tax year, you have until the 5th April 2026 and it’s easy to register for on HMRC’s online services. Before you go rushing to sign up, just be aware that if you have either Living Accommodation or Interest-free/Low Interest loans, these must still be reported on a P11D for each employee who has it – of course this could be subject to change, so look out for more articles from us, or updates from HMRC.
If you need anything in the meantime, please don’t hesitate to reach out.
Contact Southern Payroll Solutions today!
Southern Payroll Solutions
Payroll Consultant
Directors of a Hampshire based payroll bureau offering managed payroll services and ad-hoc consultancy. Niall and Rebecca have nearly two decades of payroll experience to draw upon, and are keen to…
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