News Item: HMRC Announces Transition to Mandatory Real-Time Reporting for Benefits in Kind
Starting in April 2027, HMRC will transition from annual P11D forms to mandatory real-time payroll reporting for benefits in kind (BiKs). This move requires employers to calculate tax on perks directly through their payroll software during each pay cycle, rather than via the traditional annual filing process.
The rollout will be phased:
To support employers during this transition, HMRC has confirmed a “soft landing” period for penalties during the first year of implementation. Employers are encouraged to ensure their payroll software is prepared for these changes to ensure compliance and streamline their internal processes.