Lee Sharpe considers the implications of HMRC’s announcement that payrolling of benefits-in-kind will be mandatory from April 2026.
In early 2024, HMRC announced a raft of measures supposed to ‘simplify and modernise’ the tax regime. These included a plan to make the payrolling of benefits-in-kind (BIKs) mandatory from April 2016. This will mark the effective end of Forms P11D and P11D(b).
Background
Forms P11D have been around for half a century, give or take. Each Form P11D summarises the taxable value of benefits-in-kind attributable to an employee, with the P11D(b) acting as the employer’s cover sheet summary for all its P11Ds. The P11D(b) manages the employer’s corresponding Class 1A National Insurance contributions (NICs) liability on account of all (or most) of the P11D benefits.
For now, the deadline for submission of the P11D
