HMRC to Phase In Mandatory Payrolling of Benefits from April 2027

HMRC has confirmed that mandatory real-time payrolling of benefits in kind will now be phased in from April 2027, rather than introduced in one go.
 
Phase one will focus on company cars, fuel, vans and employer-provided medical benefits, with most other benefits moving to mandatory payrolling from April 2028. 

For employers, this gives welcome breathing space - but it also means planning shouldn’t stop. Payroll, HR and finance teams will still need to review their benefits data, processes and systems ahead of the first phase.

If you need advice on P11D reporting or preparing for mandatory payrolling of benefits, get in touch with our team at enquiries@teamjs.co.uk.