Mandatory payrolling of staff benefit in kinds (BiKs) has been delayed until 2027

It has been announced that mandatory payrolling for BiKs will be introduced from April 2027 rather than April 2026 as previously planned. From April 2027 employers will be required to report and pay Income Tax and Class 1A National Insurance Contributions (NICs) on most BiKs via payroll software. This change will eliminate the need for annual P11D forms for most BiKs.

It is reported that the delay is in response to feedback from software providers, employers, tax agents and other stakeholders who reported that they need more time to prepare for the change.

If you need any help with reporting benefits in kind for your staff and directors, please get in touch and we will be glad to help.