Be ready for changes to benefits in kind reporting


Be ready for changes to benefits in kind reporting

This page was last updated on May 14, 2024
Payrolling benefits in kind, which is already an option available to employers, is set to become compulsory for all from April 2026.

The final details of the proposal are subject to further consultation, and we also await guidance on how beneficial loans and living accommodation will be reported after April 2026.

However, employers should familiarise themselves with the process before the change comes into effect (assuming there’s no policy reversal following a general election).

The main advantages of payrolling benefits

These include:

An employer still needs to submit a P11D(b) form by 6 July after the end of the tax year to report the employer’s Class 1A national insurance contributions due on the payrolled benefits.

Employers that opt for payrolling benefits in kind must register online with HMRC before the start of the relevant tax year, through their Government Gateway account. More help is available at the gov.uk website.

For the time being at least, many employers will continue to report benefits in kind using the P11D form.

Benefits covered by the P11D

These comprise:

If you’d like to learn more about how the forthcoming change could impact your organisation, speak to your Shipleys contact or one of our specialists shown on this page.

Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary. If you would like advice or further information, please speak to your usual Shipleys contact.

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