Reporting Benefits in Kind - P11d Deadline 6 July 2026

Employers should be aware that forms P11D for reporting expenses and Benefits in Kind (BIKs) provided to employees and directors during the 2025/26 tax year must be submitted to HMRC by 6 July 2026.

As HMRC continued with its move towards digital reporting, paper forms are no longer accepted. Employers must submit their P11D returns online using PAYE Online for employers or approved commercial software.

What needs to be reported on a P11d?

Benefits in Kind can include company cars, private medical insurance, fuel benefits, and other non-cash perks provided to employees or directors.

However, not all expenses and benefits need to be included on a P11D. If you are unsure as to whether something needs including, please contact us for advice.

Expenses that no longer need to be reported on a P11d

Reimbursed expenses do not need to be reported where they are incurred wholly, exclusively, and necessarily in the performance of the employee’s duties.

Employers no longer need dispensations from HMRC for these expenses, but they should have strong internal controls in place to ensure only qualifying expenses are excluded from reporting.

Trivial Benefits exemption

Trivial benefits costing no more than £50 do not need to be reported.

This commonly applies to small non-cash gifts for occasions such as Christmas or birthdays, including items such as food, flowers, or alcohol.

 To qualify for the exemption:

• The benefit must cost £50 or less
• It must not be cash or a cash voucher
• It should not be provided as a reward for past or future service
• Employers should keep records of the benefit provided and why it qualifies

Looking Ahead: Mandatory Payrolling of Benefits from April 2027

Although employers still need to complete P11D forms for the 2025/26 tax year, significant changes are coming from April 2027.

From that date, employers will be required to payroll most Benefits in Kind rather than reporting them after the end of the tax year.

This means employees will pay tax on their benefits in real time through payroll, rather than through tax code adjustments after the year end.

Benefits excluded from mandatory payrolling

The following benefits are currently excluded from mandatory payrolling and will continue to be reported on P11d forms until further notice:

• Employer-provided living accommodation
• Interest-free and low-interest loans

These can still be payrolled voluntarily if employers wish.

Why employers should prepare early

Moving Benefits in Kind into payroll will place additional pressure on payroll systems and processes.

Employers should start preparing now by:

• Reviewing current payroll procedures
• Identifying which benefits will need to be payrolled
• Ensuring payroll systems can support real-time reporting
• Training payroll and HR teams
• Preparing communications for employees

Early communication will be particularly important, as many employees may not understand how Benefits in Kind are currently taxed.

From April 2027: 

• Tax on Benefits in Kind will be deducted in real time
• Employees will no longer pay tax in arrears on benefits
• Existing tax code adjustments for estimated benefits will be removed

Some employees may initially believe they are being taxed twice. In reality they may still be settling tax due on earlier benefits while also paying tax on current benefits through payroll.  Clear communication can help reduce confusion and concerns.

Need help with P11D reporting or payrolling benefits?

If you need support with reporting expenses and Benefits in Kind by 6 July 2026, or preparing for the move to mandatory payrolling from April 2027, we can help.

Contact the team at enquiries@teamjs.co.uk for advice and assistance.