Under payrolling, employers account for the tax due on taxable benefits in kind through the payroll. Currently, payrolling is optional and employers who wish to payroll benefits in kind can do so if the benefits are registered for payrolling before the start of the tax year.
The deadline to register new benefits for payrolling in 2026/27 is 5 April 2026. All benefits in kind can be payrolled with the exception of employment-related loans and living accommodation. It is not possible to register benefits in kind for payrolling once the tax year has started.
From 6 April 2027, payrolling becomes mandatory for all benefits in kind except employment-related loans and living accommodation although employers will be able to register to payroll these voluntarily from April 2027.
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