10 December 2024
There has been a lot of talk about the planned mandating of payrolling benefits recently, so let’s take a second to go over what we know and what we can plan for.
Firstly, lets look at what has been confirmed. From a HM Revenue and Customs (HMRC) policy paper, released on 30 October 2024, we know that:
- Payrolling benefits will become mandatory from April 2026 for most benefits
- Employment related loans and accommodation will be voluntary
- A P11D process will still be available for those who do not wish to payroll them
- And end of year will be introduced to amend and values that are uncertain or fluctuating during the year
- From April 2026 to April 2027 a relaxation of penalties is being considered for adjusting to processes in the first year.
In the meantime, you will still need to register with HMRC should you wish to payroll benefits in 2025-26. From April 2026 this will no longer need to be done, unless you wish to voluntarily payroll loans or accommodation, in which case you will need to notify HMRC in the usual way.
Work is still being done by HMRC to determine the changes to RTI reporting that will be required to facilitate the change. The CIPP will work with them to ensure that the process doesn’t introduce more administrative burden than is necessary.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.