Overview

In January 2024, the government announced its intention to mandate payrolling benefits in their aim to simplify tax. The mandatory requirements will now be phased in from April 2027. If you work in payroll or process P11d’s or manage rewards and benefits, you will need to prepare for the changes that phase one of mandatory payrolling benefits will bring in April 2027.

HMRC have confirmed that from tax year 2027-2028, private medical insurance, cars, car fuel, vans and van fuel benefits will be reported to HMRC via the payroll and RTI. Employers will no longer be able to submit these benefits through the traditional P11d process, in most cases. 

It is understood that all other benefits, including; transfer of an asset, use of an asset, vouchers, employee debt, business mileage, relocation costs, services and expenses will continue to be reported via the P11d process or voluntary payrolling until April 2028. From April 2028, the intention is these benefits will also be mandated to be reported via the payroll and RTI.

Living accommodation and beneficial loans will continue to be reported via the P11d, with the expectation that the voluntary option will be made available in due course.    

This move to payrolling benefit data will bring a host of additional processing for the payroll team. 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?

What will be covered?

Guidance will be provided during the session, along with examples and exercises delegates can participate in. The session will provide the details of what we know so far.