{"id":3471,"date":"2026-03-11T10:01:50","date_gmt":"2026-03-11T10:01:50","guid":{"rendered":"https:\/\/www.robbtax.co.uk\/blog\/?p=3471"},"modified":"2026-03-11T10:02:16","modified_gmt":"2026-03-11T10:02:16","slug":"voluntary-payrolling-of-benefits-in-kind-how-can-your-business-prepare","status":"publish","type":"post","link":"https:\/\/www.robbtax.co.uk\/blog\/voluntary-payrolling-of-benefits-in-kind-how-can-your-business-prepare\/","title":{"rendered":"Voluntary payrolling of Benefits in Kind: How can your business prepare?"},"content":{"rendered":"

If your business offers employees perks such as company cars or private health insurance, you need to be aware of the upcoming changes to how these are taxed and reported.<\/p>\n

<\/p>\n

From 6 April 2027, HMRC will require most Benefits in Kind (BiKs) to be reported through payroll in real time and replace the annual P11D reporting process.<\/p>\n

This will become mandatory from the 2027-28 tax year, but employers have an opportunity to adopt the system early through voluntary payrolling.<\/p>\n

With the registration deadline for this approaching, businesses need to understand what voluntary payrolling involves and how to prepare.<\/p>\n

What is payrolling BiKs?<\/strong><\/h3>\n

BiKs are non-cash perks that employees receive in addition to their salary.<\/p>\n

Employers traditionally report these benefits annually using P11D and P11D(b) forms, with employees often seeing adjustments to their tax codes later to collect the tax owed.<\/p>\n

Payrolling benefits changes this process and employers will need to include the taxable value of benefits directly through the payroll each pay period.<\/p>\n

From April 2027, most BiKs will need to be reported through payroll via Real Time Information (RTI) submissions.<\/p>\n

However, there will be a one-year deferral for beneficial loans and employer-provided accommodation.<\/p>\n

What is voluntary payrolling for BiKs?<\/strong><\/h3>\n

Before the mandatory rules come into force, HMRC is encouraging employees to trial the system by adopting voluntary payrolling for the 2026-27 tax year.<\/p>\n

Employers will also have the choice to tax certain benefits through payroll.<\/p>\n

Those who wish to register for voluntary payrolling with HMRC must do so before 5 April 2026.<\/p>\n

If the deadline is missed, businesses will generally need to wait until the mandatory regime begins in April 2027.<\/p>\n

Why should you consider voluntary payrolling BiKs?<\/strong><\/h3>\n

Although voluntary payrolling is optional, many businesses see it as the most practical way to prepare for the upcoming changes.<\/p>\n

Other advantages include:<\/p>\n

    \n
  • A<\/strong> smoother transition to the 2027 rules \u2013<\/strong> Gives your payroll teams a full tax year to prepare your systems and processes before it becomes mandatory.<\/li>\n
  • Reduced year-end administration \u2013<\/strong> Employers can reduce reliance on P11D reporting and year-end corrections.<\/li>\n
  • Improve employee transparency \u2013<\/strong> Employees pay tax on benefits as they receive them, which reduces the risk of unexpected tax adjustments or backdated charges.<\/li>\n
  • Spot issues early \u2013<\/strong> Testing the process allows you to resolve payroll or data issues well before they become mandatory.<\/li>\n<\/ul>\n

    How can your business prepare for voluntary payrolling BiKs?<\/strong><\/h3>\n

    Businesses considering voluntary payrolling need to act now to ensure their systems, processes and teams are ready for the new requirements.<\/p>\n

    Your business should:<\/p>\n

      \n
    • Review your benefits \u2013<\/strong> Create a clear list of all benefits offered, how they are valued and where the data comes from.<\/li>\n
    • Register before the deadline \u2013<\/strong> You must register with HMRC before 5 April 2026.<\/li>\n
    • Check payroll systems \u2013 <\/strong>Ensure your payroll software can handle payrolled benefits and calculate tax and Class 1A National Insurance correctly.<\/li>\n
    • Align payroll processes with benefits data \u2013<\/strong> Make sure your benefits information can be collected and reported in time for each payroll submission.<\/li>\n
    • Communicate with employees \u2013<\/strong> Explain the changes early so employees understand how benefits may appear on their payslips and affect take-home pay.<\/li>\n<\/ul>\n

      How can we support your voluntary payrolling?<\/strong><\/h3>\n

      These new rules will affect your BiKs reporting and will become an ongoing payroll responsibility.<\/p>\n

      Our expert team can advise you on your payroll and tax obligations and help your business prepare for voluntary payrolling for BiKs.<\/p>\n

      We can support your HMRC registration and assess whether your benefit calculations are accurate and compliant.<\/p>\n

      If you want to set up voluntary payrolling or are not sure if it is right for you, you must seek professional support now.<\/p>\n

      For further advice or information on payrolling BiKs, contact our team today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      If your business offers employees perks such as company cars or private health insurance, you need to be aware of the upcoming changes to how these are taxed and reported.<\/p>\n","protected":false},"author":1,"featured_media":3474,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,89],"tags":[],"yoast_head":"\nVoluntary payrolling of Benefits in Kind: How can your business prepare? - Accountants in Sutton Coldfield<\/title>\n<meta name=\"description\" content=\"Robb & Co is an independent firm of chartered accountants and specialist tax advisors based in Sutton Coldfield, West Midlands.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.robbtax.co.uk\/blog\/voluntary-payrolling-of-benefits-in-kind-how-can-your-business-prepare\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Voluntary payrolling of Benefits in Kind: How can your business prepare?\" \/>\n<meta property=\"og:description\" content=\"If your business offers employees perks such as company cars or private health insurance, you need to be aware of the upcoming changes to how these are taxed and reported.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.robbtax.co.uk\/blog\/voluntary-payrolling-of-benefits-in-kind-how-can-your-business-prepare\/\" \/>\n<meta property=\"og:site_name\" content=\"Accountants in Sutton Coldfield\" \/>\n<meta property=\"article:published_time\" content=\"2026-03-11T10:01:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-11T10:02:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.robbtax.co.uk\/blog\/wp-content\/uploads\/2026\/03\/shutterstock_2484157269-1024x556.jpg\" \/>\n<meta name=\"author\" content=\"Robb & Co Chartered Accountants in Sutton Coldfield\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Voluntary payrolling of Benefits in Kind: How can your business prepare?\" \/>\n<meta name=\"twitter:description\" content=\"If your business offers employees perks such as company cars or private health insurance, you need to be aware of the upcoming changes to how these are taxed and reported.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Robb & Co Chartered Accountants in Sutton Coldfield\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/voluntary-payrolling-of-benefits-in-kind-how-can-your-business-prepare\/\",\"url\":\"https:\/\/www.robbtax.co.uk\/blog\/voluntary-payrolling-of-benefits-in-kind-how-can-your-business-prepare\/\",\"name\":\"Voluntary payrolling of Benefits in Kind: How can your business prepare? 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