Big changes about expenses and benefits reporting are on the horizon. With this in mind, now is the perfect time to review and refresh your reporting processes.
What are Benefits in Kind?
Non-cash perks or “fringe benefits” provided by employers to employees, which hold monetary value but are not included in salary are known as Benefits in Kind (BiK). Examples include company cars, private health insurance, interest-free loans, and accommodation.
Initial deadlines you can’t ignore
Registration to payroll benefits for the 2026/27 tax year closed on 5 April 2026.
If you’re not payrolling employee benefits, you need to stick with tradition:
- Submit a P11D for each relevant employee
- Submit a P11D(b) for Class 1A NICs
- Deadline: 6 July 2027
Your deadline to submit both your P11D and P11D(b) forms is 6 July 2026. They must be filed online and at the same time. Late and missing returns can involve costly penalties. Are you ready to hit the 6 July deadline?
If you have registered, you can manage benefits, tweak employee records and keep everything running smoothly online.
Don’t forget the P11D(b) submission
This form is a summary of all Class 1A National Insurance due on employee benefits, whether you’ve reported them through payroll or the P11D route.
You’ll need to submit a P11D(b) if:
· You’ve submitted any P11Ds.
· You’ve payrolled benefits or expenses.
· HMRC has specifically told you to.
Even if there’s nothing to declare, you need to confirm that, usually by submitting a “nil return” for Class 1A NIC. Ignore it, and you can still get fined. Silence isn’t an option.
Mandatory payrolling of Benefits in Kind (BiK) is coming
HMRC is moving to mandatory payrolling of most BiK. If you’re not already reporting benefits and expenses using the Full Payment Submission (FPS) process, you need to make the change by 6 April 2027. (This is the same system you use to report salary details to HMRC.)
‘This process means less end-of-year paperwork and more real-time activity through your payroll,’ says Ugne Jonaityte, payroll queen at re:accounts Chartered Accountants in Stevenage. ‘You should start thinking about how these requirements fit with your payroll processes. It doesn’t need to be complex, and starting ahead of time saves a lot of stress.’
Do you enjoy payroll admin?
Do you like reporting Benefits in Kind and expenses to HMRC?
Of course not … but we do!
Contact the friendly team at re:accounts in Stevenage for an initial chat without obligation. We’re here to help.
