UK | Mandatory Payroll Reporting of Benefits and Expenses Postponed

UK | Mandatory Payroll Reporting of Benefits and Expenses Postponed

On 28 April 2025, the government announced that the requirement to report and pay Income Tax and Class 1A National Insurance contributions on benefits in kind (BiKs) through payroll will now take effect from April 2027, a year later than originally planned. 

This extension is intended to allow employers, payroll professionals, software providers, tax agents, and other stakeholders sufficient time to prepare for implementation.

Employers will continue to have the option to voluntarily payroll most benefits in kind (BiKs) for Income Tax purposes during the 2026–2027 tax year. From April 2027, the reporting of BiKs and expenses will become mandatory and must be submitted through Real Time Information (RTI) via the Full Payment Submission (FPS).

 For further information, please refer to HMRC’s published Technical Note.



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