Time for P11Ds - wait, why not Payroll Benefits?

HMRC has recently announced that it will mandate the reporting and paying of Income Tax and Class 1A National Insurance Contributions (NICs) on benefits in kind via payroll software from April 2026. This builds on the progress already made towards the government’s ambition to fully digitalise the reporting of benefits in kind and to simplify the tax affairs of 3 million people; reducing the need for them to contact HMRC.

Under current rules, employers who provide taxable Benefits in Kind such as Private Medical Insurance, Health Cash Plans and Company Cars, can choose to report these benefits using either a traditional form, the P11D, or via their payroll system using the Payrolling Benefits method.

If you haven't already switched to Payrolling Benefits and need support with P11Ds, get in touch with our benefits team at benefits@theinkgroup.co.uk. We can also connect your business with our payroll team, if your current provider doesn't support Payrolling Benefits, in time for the 2025/26 tax year.