Payrolling Of Benefits In Kind (BIKs) To Become Mandatory
19th September 2024
We’re sharing a reminder that payrolling of Benefits In Kind (BIKs) is to become mandatory. This may seem a long way off but will be with us sooner than a lot of companies realise. HMRC confirmed in March 2024 that it will mandate the reporting and paying of income tax and Class 1A National Insurance contributions (NIC’s) on BIKs via payroll software.
Under current rules, if a company wishes to payroll benefits it must register the benefits before the start of the tax year. A company cannot register for the current tax year during the current tax year. If HMRC stick to these rules, then all companies providing benefits, who have not already done so, will need to register their benefits during the 2025-26 tax year. The last date P11D’s can be submitted will be 6th July 2026 to reflect benefits from the 25-26 tax year.
Get In Touch
For more information or advice on payrolling of Benefits In Kind, contact your local Whitings LLP office today.
Disclaimer - All information in this post was correct at time of writing.
