MCMANUS HALL
  • Services
    • Limited Company Accounts
    • Taxation Services
    • Self Assessment
    • CIS
    • Registered Charities
    • Xero
    • Growth Management
    • Payroll Services
    • Bookkeeping and VAT
    • Business Consultancy
    • Company Secretarial
  • Cloud Software
  • News
  • Pricing
  • Contact
  • Login
Latest News

Mandatory payrolling of benefits

5/7/2025

 
The deadline requiring employers to report most taxable benefits through payroll software has been postponed by one year to 6 April 2027. As a result, employers can continue using form P11D to report benefits for a further year.
Once mandatory reporting is introduced, all benefits, except for employer-provided accommodation and cheap/interest-free loans, will need to be payrolled. The two exceptions can still be reported using form P11D, although the longer-term intention is that they will also come under payroll provision.

For 2026/27
Payrolling remains voluntary, and employers must register before 6 April 2026 to payroll employees’ benefits for this year. As is currently the case, it will not be possible to payroll accommodation or cheap/interest-free loans.

From 2027/28 onwards
Since payrolling will be mandatory, registration will not be necessary. Therefore:
  • Registration will be required if an employer wants to voluntarily payroll accommodation or cheap/interest-free loans.
  • The P11D process will remain in place for those employers who provide, but do not payroll, accommodation and cheap/interest-free loans.
 
An end-of-year process will be available to account for the values of any taxable benefits that cannot accurately be determined during the tax year. 
 
HMRC will automatically remove benefits from employees’ tax codes in readiness for payrolling from 6 April 2027.
 
Cashflow impact
The move to mandatory payrolling could see employees facing tax deducted for multiple tax years at once. With payrolling, tax is deducted in real-time, but employees could have tax collected through their tax code for benefits received in earlier years.

Should an employee face financial difficulty due to multiple tax deductions, they can request that HMRC spread the underpayment over more than one tax year.
​
HMRC has published a technical note providing a detailed overview of the changes from 6 April 2027, available here.

Comments are closed.

    ​Archives

    June 2025
    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    February 2020
    January 2020
    November 2019
    October 2019

Powered by Create your own unique website with customizable templates.
Photos from Pam loves pie, Homedust, wuestenigel, Patrick Cannon Tax Barrister, wuestenigel, Brett Jordan, wuestenigel, raisin_raisin, wuestenigel, SME Loans, Alexandre Prevot, Jirka Matousek, wuestenigel (CC BY 2.0), wuestenigel, Jirka Matousek, moneybright, aronbaker2, foundin_a_attic, QuoteInspector.com, wuestenigel, Kate#2112, Semtrio, Rawpixel Ltd, itmpa, GoSimpleTax, DPP Law, UC Davis College of Engineering, 401(K) 2013, REM Photo ~ Sketchy Internet, Chris Yarzab, focusonmore.com, focusonmore.com, willbuckner, EpicTop10.com, Tony Webster, wuestenigel, B Rosen, London Less Travelled
  • Services
    • Limited Company Accounts
    • Taxation Services
    • Self Assessment
    • CIS
    • Registered Charities
    • Xero
    • Growth Management
    • Payroll Services
    • Bookkeeping and VAT
    • Business Consultancy
    • Company Secretarial
  • Cloud Software
  • News
  • Pricing
  • Contact
  • Login