17 November 2025
HMRC has today (17 November) released the software specifications for the upcoming mandatory payrolling of Benefits in Kind (BiKs).
The specifications are intended for software developers to be used to inform system updates and testing. However, they give us an insight into the changes ahead of the guidance release.
This move follows the government's announcement in April 2025 to extend the implementation timeline, allowing stakeholders more time to prepare for the transition to real time reporting of BiKs and taxable employment expenses through Full Payment Submissions (FPS) under PAYE.
The new system aims to improve accuracy, reduce administrative burdens, and enhance the employee experience.
Interim guidance for employers, payroll professionals, software providers and tax agents is planned to be published on GOV.UK around the end of November 2025. This will include payrolling examples for different scenarios that you may find useful. Additional information and guidance will be published in 2026 to further support this change.
The Policy Team will update you further as soon as the guidance is released.
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