Payrolling Benefits - Getting Ready for the Mandatory Requirements

Introduction

In January 2024, the government announced its intention to mandate payrolling benefits in their aim to simplify tax. HMRC are working with stakeholders, and draft legislation is expected autumn 2025.

If you work in payroll or process P11d’s or manage rewards and benefits, you will need to prepare for the changes that mandatory payrolling benefits will bring in April 2027.

HMRC have confirmed that from tax year 2027-2028, payrolling will be the only option to submit benefit data, in most cases. The change to reporting benefit data bring a host of additional processing for the payroll team. It is understood that all benefit data currently reported via the P11d, will be reported through the payroll software. HMRC have already indicated this is over 100 additional fields/data items required for the FPS.

Preparation will be key; the whole benefit function will need to change by 2027. Calculating the CEV in real time, not at the end of the tax year. How will payroll be informed of mid-year changes? Who will calculate the benefit value to be processed? Will authorisation be required before the benefit can be changed?

Guidance will be provided during the session, based on current requirements, along with examples and exercises viewers can participate in. The session will provide the details of what we know so far.

What You Will Learn

This live and interactive course will cover the following:

• An introduction to payrolling benefits
• The voluntary option and how this currently works
• Delving into the mandatory requirements and what impact this will have on businesses and payroll bureaus
• Examples of calculating CEV and processing this in the payroll, managing benefit changes and renewal prices mid-year
• Project planning and considerations working towards April 2027 go live

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.