Changes to Benefits in Kind Reporting
At SW&P Accountancy we offer payroll support for anyone who needs it.
HMRC have announced that starting from April 2026, there will be changes to the way income tax and national insurance (Class 1A) on benefits in kind (BIK) are reported and paid. This will affect both employers and their employees.
There will no longer be a requirement to report a P11D form on an annual basis. Instead, the government will require real-time information (RTI) reporting of benefits through payroll in the same way that salaries and other employee details are already reported to HMRC. This will reduce the risk of errors associated with annual reporting and mean tax is not being paid in arrears.
As of now we are expecting more specifications to be announced by the end of the year, detailing precisely what information will need to be reported on a pay-by-pay basis and how this will be phased in. When these details are announced, we will provide more details on the transition to RTI reporting for BIKs for those affected clients in order to ensure a smooth transition.
Need more information ? Get in touch with the team today for friendly, expert advice.
