Payrolling Benefits 2027-28
27th June 2026
On Monday 15th June, HMRC announced that, once again, there is a delay in the wholesale mandatory implementation of payrolling benefits. Instead, we will see a phased-in approach beginning April 2027. Some will see this as a sensible move giving more time for software providers to prepare the necessary digital fields within the payroll software and allowing companies more time to adapt to the new system. Others will see this as HMRC again failing to deliver on long established deadlines and any delay just serves to further complicate the P11D process.
From April 2027 it will be mandatory to payroll:
- Company cars and fuel
- Vans and fuel
- Private medical benefits
All other benefits, except for accommodation and loans, will become mandatory from April 2028. Accommodation and loans will remain as voluntary for the foreseeable future.
No announcement has yet been made regarding the registering of either mandatory or non-mandatory benefits but, it is assumed, that mandatory benefits will be included in future payroll software and will not need to be registered. Any companies wishing to payroll all their benefits from April 2027, thereby avoiding a two-tier approach, can register with HMRC in the normal way.
Contact Us
If you need any further advice on the payrolling of benefits please contact your local Whitings office.
