P11D forms are with us for a bit longer! The government has decided to hold off on making companies report benefits in kind through payroll for now. You won’t have to switch to the new system until April 2027 … that’s a delay of almost two years.
In addition, there won’t be any penalties in the first year except for gross abuse of the system.
Originally, these changes were supposed to start in 2026, which would have meant spending more on payroll software, investing in system upgrades or buying new software.
Now, employers have until 1 April 2027 to sort out how they’ll report income tax and Class 1A National Insurance on benefits in kind using payroll software. ‘This delay gives companies more breathing room to figure things out and get everything in place before the rules change,’ says Ugne Jonaityte who manages payroll for clients at re:accounts Chartered Accountants in Stevenage.
Does your business need to report benefits in kind?
Talk to the friendly payroll experts at re:accounts. We’ll help you get ready for the big switch over!
