Real time reporting of Benefits in Kind from April 2026
Real time reporting of Benefits in Kind from April 2026
In last month’s budget, the government announced some updates to the January 2024 proposals, which need to be taken into account for the 2025-26 tax year.
From April 2026 there will be a phased introduction of the new reporting requirements, where Employers will be required to report all benefits in kind expenses in real time, through payroll software, except for payroll loans and accommodation.
This means that employment related loans and accommodation will only need to be reported through payroll software on a voluntary basis from April 2026. A modified P11D and P11D(b) will be available to report just loans and accommodation if employers do not wish to payroll these.
HMRC has confirmed that ‘no decision has been made as to when we will mandate the reporting of loans and accommodation through payroll software — careful consideration will be given to make sure sufficient notice of any change will be provided’.
An end of year process will be introduced to amend the taxable values of any BIK that cannot be determined during the tax year, however, HMRC stressed that the taxable values of most BIK need to be reported as accurately as possible during the tax year.
However, in addition to the above mentioned changes, for any businesses operating company car schemes, the requirement to submit P46 (Car) forms will be removed as the data will be provided through payroll software in real time.
No doubt more information will become available as this new process is rolled out.
