Sarah Bradford outlines how employers should report taxable benefits and expenses provided to employees in the 2025/26 tax year.
Employers who provided employees with taxable expenses and benefits in the 2025/26 tax year need to comply with various reporting requirements. The exact nature of those requirements will depend on whether the employer payrolled the benefit.
Payrolled benefits
Where an employer opted to payroll a benefit, the tax on that benefit is collected throughout the tax year by deduction from the employee’s cash pay. Under payrolling, the taxable amount of the benefit is treated like extra pay, which is paid to the employee in equal instalments throughout the tax year, the amount of which is found by dividing the taxable amount of the benefit by the number of pay days in the tax year. The taxable
