HM Revenue & Customs (HMRC) have announced that the reporting and paying of income tax and Class 1A National Insurance Contributions (NIC) on benefits in kind (BIKs) via the payroll scheme will become mandatory from April 2026.  This will mean the end to the existing P11D mechanism and is estimated to remove the need for up to four million P11D(b)s to be submitted each year.

The change is intended to make tax reporting easier and more straight forward for the employer but it does mean that employers need to be ready in advance of these changes.

The current position regarding benefits in kind

What is changing?

An opportunity to adopt early

Preparing ahead of the mandatory change

Should you have any questions with regard to the payrolling of benefits or the implementation of this new process please don’t hesitate to contact us, either via your usual Seymour Taylor representative or via

Posted in Blog news.