{"id":28706,"date":"2025-05-13T09:40:46","date_gmt":"2025-05-13T08:40:46","guid":{"rendered":"https:\/\/smh.group\/?p=28706"},"modified":"2025-05-13T09:40:46","modified_gmt":"2025-05-13T08:40:46","slug":"mandatory-payrolling-of-employee-benefits-delayed-until-2027","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/","title":{"rendered":"Mandatory payrolling of employee benefits delayed until 2027"},"content":{"rendered":"<p><strong>The deadline for employers to report most taxable benefits through payroll software has been delayed by one year to 6 April 2027, allowing employers to continue using form P11D for an additional year.<\/strong><\/p>\n<p>Once mandatory reporting is introduced, all benefits, except for employer-provided accommodation and cheap\/interest-free loans, will need to be payrolled. The two exceptions can still be reported using form P11D, although the longer-term intention is that they will also come under payroll provision.<\/p>\n<p><strong>For 2026\/27 <\/strong><\/p>\n<p>Payrolling remains voluntary, and employers must register before 6 April 2026 to payroll employees\u2019 benefits for this year. As is currently the case, it will not be possible to payroll accommodation or cheap\/interest-free loans.<\/p>\n<p><strong>From 2027\/28 onwards<\/strong><\/p>\n<p>Since payrolling will be mandatory, registration will not be necessary. Therefore:<\/p>\n<ul>\n<li>Registration will be required if an employer wants to voluntarily payroll accommodation or cheap\/interest-free loans.<\/li>\n<li>The P11D process will remain in place for those employers who provide, but do not payroll, accommodation and cheap\/interest-free loans.<\/li>\n<\/ul>\n<p>An end-of-year process will be available to account for the values of any taxable benefits that cannot accurately be determined during the tax year.<\/p>\n<p>HMRC will automatically remove benefits from employees\u2019 tax codes in readiness for payrolling from 6 April 2027.<\/p>\n<p><strong>Cashflow impact<\/strong><\/p>\n<p>The move to mandatory payrolling could see employees facing tax deducted for multiple tax years at once. With payrolling, tax is deducted in real-time, but employees could have tax collected through their tax code for benefits received in earlier years.<\/p>\n<p>Should an employee face financial difficulty due to multiple tax deductions, they can request that HMRC spread the underpayment over more than one tax year.<\/p>\n<p>HMRC has published a technical note providing a detailed overview of the changes from 6 April 2027, available <a href=\"https:\/\/www.gov.uk\/government\/publications\/reporting-and-paying-income-tax-and-class-1a-national-insurance-contributions-on-benefits-in-kind-in-real-time-an-update\/technical-note-mandating-the-reporting-of-benefits-in-kind-and-expenses-through-payroll-software-an-update\">here<\/a>.<\/p>\n<p><strong>For more information,\u00a0<\/strong><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/contact\/\"><strong>contact us<\/strong><\/a><strong>\u00a0on\u00a00114 266 4432\u00a0or email\u00a0<\/strong><a href=\"mailto:info@smh.group\"><strong>info@smh.group.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The deadline for employers to report most taxable benefits through payroll software has been delayed by one year to 6 April 2027, allowing employers to continue using form P11D for an additional year. Once mandatory reporting is introduced, all benefits, except for employer-provided accommodation and cheap\/interest-free loans, will need to be payrolled. The two exceptions can still be reported using form P11D, although the longer-term intention is that they will also come under payroll provision. For 2026\/27 Payrolling remains voluntary, and employers must register before 6 April 2026 to payroll employees\u2019 benefits for this year. As is currently the case, it will not be possible to payroll accommodation or cheap\/interest-free loans. From 2027\/28 onwards Since payrolling will be mandatory, registration will not be necessary. Therefore: Registration will be required if an employer wants to voluntarily payroll accommodation or cheap\/interest-free loans. The P11D process will remain in place for those employers who provide, but do not payroll, accommodation and cheap\/interest-free loans. An end-of-year process will be available to account for the values of any taxable benefits that cannot accurately be determined during the tax year. HMRC will automatically remove benefits from employees\u2019 tax codes in readiness for payrolling from 6 April [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":28689,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[233,108],"class_list":["post-28706","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smh-accounting-business-advisory","tag-employee-benefits","tag-payroll"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mandatory payrolling of employee benefits delayed until 2027 - SMH Group<\/title>\n<meta name=\"description\" content=\"Payrolling remains voluntary, and employers must register before 6 April 2026 to payroll employees\u2019 benefits for this year.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mandatory payrolling of employee benefits delayed until 2027 - SMH Group\" \/>\n<meta property=\"og:description\" content=\"Payrolling remains voluntary, and employers must register before 6 April 2026 to payroll employees\u2019 benefits for this year.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/\" \/>\n<meta property=\"og:site_name\" content=\"SMH Group\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-13T08:40:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2025\/05\/Mandatory-payrolling-of-employee-benefits-delayed-until-2027.png\" \/>\n\t<meta property=\"og:image:width\" content=\"864\" \/>\n\t<meta property=\"og:image:height\" content=\"648\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Brendan Hall\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Brendan Hall\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/\"},\"author\":{\"name\":\"Brendan Hall\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\"},\"headline\":\"Mandatory payrolling of employee benefits delayed until 2027\",\"datePublished\":\"2025-05-13T08:40:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/\"},\"wordCount\":302,\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2025\/05\/Mandatory-payrolling-of-employee-benefits-delayed-until-2027.png\",\"keywords\":[\"Employee Benefits\",\"payroll\"],\"articleSection\":[\"SMH Accounting &amp; Business Advisory\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/\",\"name\":\"Mandatory payrolling of employee benefits delayed until 2027 - SMH Group\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2025\/05\/Mandatory-payrolling-of-employee-benefits-delayed-until-2027.png\",\"datePublished\":\"2025-05-13T08:40:46+00:00\",\"author\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\"},\"description\":\"Payrolling remains voluntary, and employers must register before 6 April 2026 to payroll employees\u2019 benefits for this year.\",\"breadcrumb\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#primaryimage\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2025\/05\/Mandatory-payrolling-of-employee-benefits-delayed-until-2027.png\",\"contentUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2025\/05\/Mandatory-payrolling-of-employee-benefits-delayed-until-2027.png\",\"width\":864,\"height\":648,\"caption\":\"payrolling\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/devstagesite.co.uk\/smhgroup\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mandatory payrolling of employee benefits delayed until 2027\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#website\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/\",\"name\":\"SMH Group\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/devstagesite.co.uk\/smhgroup\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\",\"name\":\"Brendan Hall\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g\",\"caption\":\"Brendan Hall\"},\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/author\/brendan-hall\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Mandatory payrolling of employee benefits delayed until 2027 - SMH Group","description":"Payrolling remains voluntary, and employers must register before 6 April 2026 to payroll employees\u2019 benefits for this year.","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_GB","og_type":"article","og_title":"Mandatory payrolling of employee benefits delayed until 2027 - SMH Group","og_description":"Payrolling remains voluntary, and employers must register before 6 April 2026 to payroll employees\u2019 benefits for this year.","og_url":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/","og_site_name":"SMH Group","article_published_time":"2025-05-13T08:40:46+00:00","og_image":[{"width":864,"height":648,"url":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2025\/05\/Mandatory-payrolling-of-employee-benefits-delayed-until-2027.png","type":"image\/png"}],"author":"Brendan Hall","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Brendan Hall","Estimated reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#article","isPartOf":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/"},"author":{"name":"Brendan Hall","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e"},"headline":"Mandatory payrolling of employee benefits delayed until 2027","datePublished":"2025-05-13T08:40:46+00:00","mainEntityOfPage":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/"},"wordCount":302,"image":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#primaryimage"},"thumbnailUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2025\/05\/Mandatory-payrolling-of-employee-benefits-delayed-until-2027.png","keywords":["Employee Benefits","payroll"],"articleSection":["SMH Accounting &amp; Business Advisory"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/","url":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/","name":"Mandatory payrolling of employee benefits delayed until 2027 - SMH Group","isPartOf":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#website"},"primaryImageOfPage":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#primaryimage"},"image":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#primaryimage"},"thumbnailUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2025\/05\/Mandatory-payrolling-of-employee-benefits-delayed-until-2027.png","datePublished":"2025-05-13T08:40:46+00:00","author":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e"},"description":"Payrolling remains voluntary, and employers must register before 6 April 2026 to payroll employees\u2019 benefits for this year.","breadcrumb":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#primaryimage","url":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2025\/05\/Mandatory-payrolling-of-employee-benefits-delayed-until-2027.png","contentUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2025\/05\/Mandatory-payrolling-of-employee-benefits-delayed-until-2027.png","width":864,"height":648,"caption":"payrolling"},{"@type":"BreadcrumbList","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/mandatory-payrolling-of-employee-benefits-delayed-until-2027\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/devstagesite.co.uk\/smhgroup\/"},{"@type":"ListItem","position":2,"name":"Mandatory payrolling of employee benefits delayed until 2027"}]},{"@type":"WebSite","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#website","url":"https:\/\/devstagesite.co.uk\/smhgroup\/","name":"SMH Group","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/devstagesite.co.uk\/smhgroup\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e","name":"Brendan Hall","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g","caption":"Brendan Hall"},"url":"https:\/\/devstagesite.co.uk\/smhgroup\/author\/brendan-hall\/"}]}},"_links":{"self":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/28706","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/comments?post=28706"}],"version-history":[{"count":1,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/28706\/revisions"}],"predecessor-version":[{"id":28707,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/28706\/revisions\/28707"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/media\/28689"}],"wp:attachment":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/media?parent=28706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/categories?post=28706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/tags?post=28706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}