Mandatory payrolling of employee benefits delayed until 2027
The start date of mandatory payrolling of employee benefits has been delayed from April 2026 to April 2027. What do we know so far?
The government has announced a delay to the introduction of mandatory payrolling for benefits in kind and taxable employment expenses. These measures have been pushed back from April 2026 to April 2027, allowing more time for employers, accountants, software providers, tax advisors, etc. to prepare.
A technical note has been published that outlines how the new system will work. This aims to help businesses prepare for the changes; but also states that policy positions will not be finalised until legislation and guidance is published. Draft legislation, draft guidance and technical information is not expected until Autumn 2025 at the earliest. However, it is still worth looking at the note because you can give feedback to HMRC to help shape the final policy.
Related Topics
-
Save tax by combining directors’ loan accounts
You started a company last year and it’s time to prepare its first accounts. Your director’s loan account (DLA) is in credit but your spouse’s is overdrawn. Might amalgamating the DLAs avoid or reduce a tax charge?
-
Updated guidance on mandatory payrolling of benefits in kind
Much like the rollout of mandatory payrolling of benefits in kind, HMRC guidance on the matter is coming in dribs and drabs. What's the latest?
-
Give your children a cheap mortgage
Your son is struggling to get on the property ladder and current mortgage interest rates are making it harder. You’re over the inheritance tax (IHT) threshold but you’re reluctant to give him the money because you’ve heard horror stories about others losing half of it in a divorce. Is a family loan the solution for both of you?