BTMR Summer 2025 Briefing

HMRC has confirmed that the mandatory payrolling of benefits in kind (BIKs) will be delayed to April 2027, giving businesses more time to get to grips with the process
 

Mandatory payrolling of benefits delayed.

Previously planned for April 2026, the change will require businesses to report and process income tax and Class 1A national insurance contributions on BIKs in real time, rather than declaring them annually via the P11D.

Currently most BIKs can be processed via the payroll on a voluntary basis.

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