Real-time reporting of tax and NICs for certain benefits in kind

HMRC will phase in mandatory real-time reporting of tax and NICs for certain benefits in kind and taxable expenses.

HMRC had previously planned to introduce such mandatory payrolling from April 2027, but will now introduce this in phases, having gathered feedback on the measures. Phase one will begin from 6 April 2027, and phase two will start from 6 April 2028.

From 6 April 2027 to 5 April 2028, mandatory payrolling will apply only to company cars, car fuel, vans, van fuel and medical benefits. Mandatory payrolling for most other benefits will be introduced from April 2028.

Employers will be able to register for voluntary payrolling from November 2026 for all other benefits in kind that have not been mandated to be payrolled from April 2027, including loans and accommodation.

Mandatory payrolling of benefits in kind interim guidance is being updated to reflect phasing and is expected to be published in July 2026. HMRC expect the final guidance for phase 1 to be published in autumn 2026.