Payrolling Benefits in Kind
21st January 2025
They say that time passes quicker as you get older. Speaking from experience I can wholly endorse this saying.
In March 2024, HMRC confirmed that it will be compulsory for all benefits to be payrolled from April 2026. At the time of the announcement there was still an issue concerning preferential loans and accommodation. These issues have been resolved and will also need to be payrolled from the start of the 2026 tax year.
As we already know, all payrolled benefits must be registered BEFORE the start of the tax year they are pertaining to and, if I was to say the take up on registering early has been a little on the slow side, I’d be in danger of over-stating the take up rate. Initially the complicated sign-up procedure could be seen as an excuse for the poor rate of registration, however the rules have been changed and we, as agents, can apply for payrolled benefits on behalf of clients.
Helpful Advice
It is advisable to take the plunge early. There is still time to register benefits for the 2025-26 tax year but, as I say above, time passes quickly and January 2026 will be here before you’re even aware of it. So, if you are not quite ready to payroll your benefits for 25-26, it would be prudent to register as soon as possible once we reach the new tax year.
Remember, under the existing system, the last time you can file a P11D will be 6th July 2027 which will reflect the benefits paid in the 2026-27 tax year. If you do not register to payroll benefits before April 2026, you will not be able make the necessary returns to HMRC.
Get In Touch
If you need any help or assistance regarding the above, please contact your local Whitings LLP office and ask to speak to our Whitings Payroll Bureau Team.
Disclaimer - All information in this post was correct at time of writing.
