HMRC reminds employers about payrolling benefits deadlines

HMRC is reminding employers of key dates and preparations ahead of the transition to real-time payrolling of benefits in kind (BiKs). With an important voluntary registration deadline approaching, what do payroll teams need to know?

The February 2026 edition of HMRC’s Employer Bulletin highlights important dates and guidance for employers preparing to report BiKs through payroll software rather than via P11Ds. The update forms part of the wider move towards payrolling most BiKs in real time under the new system. The deadline to register for voluntary payrolling of BiKs for the 2026/27 tax year is 5 April 2026. Employers that intend to payroll benefits in the next tax year must complete registration before 6 April 2026, as the voluntary registration service closes once the tax year begins.

The Bulletin also reiterates that payrolling most benefits in kind will become mandatory from April 2027. From that point, employers will be required to tax benefits through payroll software and real time information submissions rather than relying on end-of-year P11D reporting. For employers and payroll professionals, the practical points are straightforward:

register for voluntary payrolling before 5 April 2026 if you intend to payroll BiKs in 2026/27
ensure payroll software can handle real-time benefit reporting
review and plan to change internal processes if you currently rely on P11D reporting

With the move to mandatory payrolling now less than 14 months away, employers that delay preparation risk operational pressure during the 2026/27 tax year.

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