{"id":27562,"date":"2025-03-31T14:08:19","date_gmt":"2025-03-31T14:08:19","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/?p=27562"},"modified":"2025-03-31T14:08:19","modified_gmt":"2025-03-31T14:08:19","slug":"mandatory-payrolling-of-benefits-in-kind-biks","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/mt-pay\/payroll-press-articles\/mandatory-payrolling-of-benefits-in-kind-biks\/","title":{"rendered":"Mandatory payrolling of benefits in kind (BiKs)"},"content":{"rendered":"

Benefits in kind (BiKs) are goods and services provided to an employee for free or at greatly reduced costs. Employers are legally obliged to provide their employees details of relevant benefits in kind they have received in a tax year.<\/p>\n

From April 2026, it will be mandatory to report all BiKs (with the exception of employment related loans and accommodation) in real time via payroll.<\/p>\n

Here is what you need to know about the new mandatory payrolling of BiKs and how to prepare.<\/p>\n

What are the key changes?<\/strong><\/p>\n

BiKs will need to be reported to HM Revenue & Customs (HMRC) via PAYE through Real Time Information (RTI) from April 2026.<\/p>\n

The reporting process for BiKs will be through the Full Payment Submission (FPS) \u2013 the same process currently used to report salary and other employee details to HMRC.<\/p>\n

Additionally, an end of year process will be introduced to amend the taxable values of any BiKs that cannot be determined during the tax year.<\/p>\n

What are the current exceptions?<\/strong><\/p>\n

Loans and accommodation will only need to be reported through payroll software on a voluntary basis from April 2026.<\/p>\n

A modified P11D and P11D(b) will be available to report loans and accommodation if employers do not wish to payroll these.<\/p>\n

The Government intends to make reporting loans and accommodation through payroll mandatory in the future.<\/p>\n

Preparing for mandatory payrolling<\/strong><\/p>\n

It is essential that you prepare your business for mandatory payrolling of BiKs and stay up to date with changes in legislation. Getting it wrong means you could face hefty fines, not to mention having to deal with a disgruntled workforce.<\/p>\n

Investing in payroll expertise can save you time, money, and stress.<\/p>\n

Our expert team can work with you to handle all aspects of your payroll, allowing you to focus on what really matters \u2013 achieving your business goals.<\/p>\n

 <\/p>\n

Looking for payroll support tailored to your needs? Get in touch<\/a> to discover our comprehensive payroll solution.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Benefits in kind (BiKs) are goods and services provided to an employee for free or at greatly reduced costs. 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