2026-27 Payrolling Benefits
17th March 2026
Final call for those employers who have expressed an interest in payrolling benefits for the 2026-27 tax year.
Anyone wishing to register their benefits for 2026-27 tax year needs to do so by 5th April 2026. From April 2027 it will be compulsory for all benefits (with the possible exceptions of preferential loans and employer provided living accommodation) to be payrolled, so you can, if you wish continue to file P11D’s in the traditional way.
Payrolling benefits allows for real-time benefit reporting. No more in-year tax code modifications as any tax is accounted for in the actual pay run. The downside is obviously the fact that employees will have a short period where they are, in effect, paying tax twice. Once in real-time and once in arrears.
Only those benefits registered can be payrolled, so, for example, you could, if you wish, chose to payroll health insurance but leave car benefits to be processed via a P11D. You register via your own employer tax portal, or if you prefer, ask your agent to register on your behalf. As it becomes compulsory from April 2027, why not take the plunge early?
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For more information or advice on how we can help you with your Payroll, contact your local Whitings LLP office today.
Disclaimer - All information in this post was correct at time of writing.
