UK Mandatory Payrolling Benefits
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Country
United Kingdom
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learning hour's
3
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Material Year
2025
Overview
In January 2024, the UK government announced its intention to mandate payrolling benefits in their aim to simplify tax. HMRC are working with stakeholders, and draft legislation is expected late 2024.
If you work in payroll or process P11d’s or manage rewards and benefits, you will need to prepare for the changes that mandatory payrolling benefits will bring in April 2026.
HMRC have confirmed that tax year 2025-2026 will be the last year P11d’s and P11d(b)’s will be accepted. From 2026-2027 onwards, payrolling will be the only option to submit benefit data in most cases. If the organisation is not ready for these changes by April 2026, employees may face a high tax bill.
Preparation will be key; the whole benefit function will need to change by 2026. Calculating the CEV in real time, not at the end of the tax year. How will payroll be informed of mid-year changes? Who will calculate the benefit value to be processed? Will authorisation be required before the benefit can be changed.
What will be covered?
Guidance will be provided during the session, based on current requirements, along with examples and exercises viewers can participate in. The session will provide the details of what we know so far.
Course Trainers
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Jo
Payroll LecturerJo has over 20 years’ payroll experience, working in a variety of different roles during that time. Jo has always been involved in payroll, this includes the 10 years whilst working for a HR and Payroll software provider. During those 10 years, roles included consultant, project manager, payroll quality manager and finally, going on to establish and implement a payroll managed service using the company’s standard HR and Payroll product.
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