HMRC has announced that the introduction of mandatory payrolling of benefits in kind will now be delayed until 6 April 2027, a year later than originally planned.
This extension means that income tax and Class 1A National Insurance contributions on benefits and expenses will not need to be reported via Real Time Information (RTI) or paid in real time until April 2027.
From that date, employers will also be able to voluntarily payroll employment-related loans and accommodation.
The delay is intended to give employers and payroll providers additional time to prepare. HMRC has issued updated guidance to support this transition.
Although, there is no requirement to register for mandatory payrolling at this stage, employers may choose to voluntarily payroll benefits from 6 April 2026, and if so, will need to register for this service prior to 5 April 2026.
If you are considering voluntary payrolling from 6 April 2026, please get in touch for more information.
HMRCs own payroll software will be updated to deal with the payrolling of benefits alongside other payroll software providers.
Get in touch
More detailed information will follow shortly. In the meantime, if you have any questions, we’re here to help.
Contact us by emailing enquiries@pmm.co.uk or calling 01254 679131.
