With the July deadlines fast approaching, now is the time for employers to ensure that all benefits in kind (BIKs) provided during the 2025/26 tax year are correctly reported to HMRC. Getting this right is essential to avoid penalties and ensure compliance.
Our payroll team outlines the key actions you need to take, along with important context about future changes to how benefits will be reported.
Your P11D responsibilities: what must be completed by July
If your organisation provides taxable benefits to employees or directors and you have not opted to payroll them, you are required to submit P11D forms for the 2025/26 tax year. This includes benefits provided to family members in family‑run businesses.
Typical benefits that require reporting include:
- Company cars and vans
- Private medical insurance
- Employer provided living accommodation
- Loans or overdrawn directors’ loan accounts
- Travel or commuting costs
- Employee entertainment or gifts
Key deadlines you must meet
6 July 2026 – Deadline for submitting all P11D forms and the accompanying P11D(b) employer declaration to HMRC.
22 July 2026 – Deadline for paying your Class 1A National Insurance Contributions, if paying electronically.
Avoiding Penalties
HMRC charges:
- £100 per month (or part month) for every 50 employees if forms are submitted late
- Additional fines of up to £3,000 per form for incorrect or incomplete information
Accurate and timely submission is essential to avoid unnecessary costs.
Why this matters more than ever
The rules for reporting BIKs can be complex, and for organisations with multiple employees or varied benefit types, ensuring accuracy can be challenging. This year, many employers are also preparing for future changes, which adds to the workload.
Looking ahead: mandatory payrolling of benefits from April 2027
Although your immediate focus should be on the July 2026 P11D deadlines, it’s important to be aware that HMRC will require mandatory payrolling of benefits from April 2027.
Payrolling benefits means:
- Tax on benefits is collected through payroll in real time
- Many traditional P11Ds will no longer be needed
- Employees receive clearer, more transparent payslips
- Employers face reduced year-end admin
The deadline for mandatory implementation was originally April 2026 but has been pushed back to April 2027, giving employers additional time to adapt systems and processes.
How we can support you
Our payroll and tax teams are here to help with:
- Preparing and submitting your P11Ds
- Help determine which benefits need reporting
- Ensuring Class 1A NIC calculations are correct
- Supporting with the transition to payrolling
Whether you need assistance with this year’s P11Ds or want to prepare ahead for the 2027 changes, we can guide you every step of the way.
Get in touch today by clicking the button below.
