GLOBAL PAYROLL MAGAZINE
33
rolling
Author: Susan Ball and Gavin Phillips
Susan Ball and Gavin Phillips of RSM UK look at the current rules and challenges for employers as the government plans to make the payrolling of benefits compulsory from April 2026.
There have been significant changes in reporting benefits in kind for employees in the UK since the introduction of P11D paper forms in the early 1960s. In April 2016, voluntary payrolling of benefits in kind (BiK) was introduced, giving employers the option to payroll benefits instead of completing P11D forms. In a notable development, the UK Government announced in January 2024 that payrolling of BiK will become compulsory from April 2026. Currently, any employer-provided benefit can be payrolled, except:
Interest-free and low-interest loans, and Living accommodation provided by the employer. Government officials plan to issue additional draft legislation later this year, to accommodate the required changes, with additional guidance also due to be published ahead of the change. This new mandatory requirement may present more challenges than employers anticipate, and it’s worth employers planning ahead if they don’t already payroll BiK.
Made with FlippingBook - Online magazine maker