UK Mandatory Payrolling Benefits
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Country
United Kingdom
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learning hour's
3
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Material Year
2025
Overview
In January 2024, the government announced its intention to mandate payrolling benefits in their aim to simplify tax. HMRC are working with stakeholders, and draft legislation is expected autumn 2025.
If you work in payroll or process P11d’s or manage rewards and benefits, you will need to prepare for the changes that mandatory payrolling benefits will bring in April 2027.
HMRC have confirmed that from tax year 2027-2028, payrolling will be the only option to submit benefit data, in most cases. The change to reporting benefit data bring a host of additional processing for the payroll team. It is understood that all benefit data currently reported via the P11d, will be reported through the payroll software. HMRC have already indicated this is over 100 additional fields/data items required for the FPS.
Preparation will be key; the whole benefit function will need to change by 2027. Calculating the CEV in real time, not at the end of the tax year. How will payroll be informed of mid-year changes? Who will calculate the benefit value to be processed? Will authorisation be required before the benefit can be changed?
Guidance will be provided during the session, based on current requirements, along with examples and exercises viewers can participate in. The session will provide the details of what we know so far.
What will be covered?
Guidance will be provided during the session, based on current requirements, along with examples and exercises viewers can participate in. The session will provide the details of what we know so far.
Course Trainers
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Jo
Payroll LecturerJo has over 20 years’ payroll experience, working in a variety of different roles during that time. Jo has always been involved in payroll, this includes the 10 years whilst working for a HR and Payroll software provider. During those 10 years, roles included consultant, project manager, payroll quality manager and finally, going on to establish and implement a payroll managed service using the company’s standard HR and Payroll product.
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