From 6 April 2027, employers must payroll taxable benefits in kind and expenses in real time, including company cars, car fuel, vans, van fuel, and employer-provided medical benefits. Most other benefits will become subject to mandatory payrolling from April 2028, while employment-related loans and accommodation will remain voluntary.

Employers wishing to payroll non-mandatory benefits voluntarily for the 2027–28 tax year will be able to register through HMRC’s online service from November 2026. The service will allow employers to register benefits such as employment-related loans and accommodation for payrolling from April 2027.

Under the new arrangements, employers who voluntarily payroll non-mandatory benefits must also report and pay the associated Class 1A National Insurance contributions through the payroll from 6 April 2027. These contributions can no longer be reported separately at the end of the tax year.

Employers already registered for voluntary payrolling will automatically continue into 2027–28. Employers who wish to stop voluntary payrolling for non-mandated benefits must do so by 5 April 2027.

Because of the practical difficulties of real-time reporting, employers with eligible globally mobile employees will be permitted to voluntarily exclude those individuals from the mandatory real-time requirements. HMRC plans to make a new online service available in November 2027 for employers to choose this option and identify the employees concerned, who will instead continue to be reported via the traditional year-end P11D process.

Employers should ensure they review their benefits arrangements and payroll systems ahead of these changes.