GLOBAL PAYROLL MAGAZINE
37
What should employers do now, ahead of April 2026? Employers should:
an Appendix 7A scheme will also be required, whereby any NIC due is reconciled with HMRC by 31 March (following the end of the tax year). The focus on the processes and practicalities of obtaining overseas benefit details each pay period is reinforced accordingly. For UK employees working outside the UK, similar challenges will arise in collating benefit details provided outside the UK in real time, particularly when an employee remains tax resident in the UK.
Consider the flow of data on benefits and expenses as early as possible to ensure accurate payroll processing per pay period, especially if the data is stored in multiple systems or locations. Check payroll software can accommodate new payrolling of BiK, including any breakdowns of the data, as reports will be required. Evaluate the need for software to assist in calculating benefit-in-kind amounts and tracking for reporting purposes. Consider payrolling some benefits from April 2025, ahead of the mandatory
implementation in April 2026. For globally mobile employees,
establish processes and procedures to regularly identify benefits provided to employees outside the UK in real time. Stay updated on any changes to legislation and guidance.
Authors: Susan Ball and Gavin Phillips
Susan Ball is a partner at RSM UK , and she has more than 30 years’ experience working extensively in the employment tax, investigations and reward field. Susan is the past President of the Chartered Institute of Taxation and sits on its employment taxes committee.
Gavin Phillips is a Tax Director at RSM and has worked in the field of global mobility taxation for over 19 years. Gavin has extensive experience advising organisations who have a globally mobile workforce with the related employment tax and payroll compliance requirements that may arise.
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