Mandatory benefit in kind payrolling date pushed back

Mandatory benefit in kind payrolling date pushed back

The Government has confirmed that the compulsory inclusion of benefits in kind (BIK) and taxable expenses in payroll will now take effect from April 2027. This deferral offers employers more time to review their internal processes and address any inconsistencies in benefit reporting. Current BIK reporting relies on a mixed approach Employers currently have the option to payroll certain benefits if they register with HM Revenue & Customs (HMRC) i…

Mandatory payrolling delayed to 2027 – Time to prepare, not to forget

The Government has confirmed that the mandatory payrolling of benefits in kind (BIK) and taxable employment expenses will now be introduced from April 2027, a year later than initially planned. This extra time allows employers to address any gaps in how benefits are managed before mandatory payrolling begins. How benefits in kind are currently reported At present, you have the option to process BIK voluntarily through payroll for Income Tax purp…