Payrolling Benefits - Getting Ready for the Mandatory Requirements

Introduction

In January 2024, the government announced its intention to mandate payrolling benefits in their aim to simplify tax. HMRC are working with stakeholders, and the new government has confirmed its intention to make payrolling benefits mandatory from April 2026.

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 for most benefits. From 2026-2027 onwards, payrolling will be mandatory for all benefits apart from living accommodation and loans, and a cut down version of the P11d and P11d(b) will be made available for them along with a new voluntary payrolling option, which will require registration.

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?

Payroll bureaus will also need to be prepared for the mandatory changes, because it will be different to the voluntary option.

Guidance will be provided during this live 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.

What You Will Learn

This live and interactive course will cover the following:

• An introduction to payrolling benefits
• The voluntary option and how this currently works
• Delving into the mandatory requirements and what impact this will have on businesses and payroll bureaus
• Examples of calculating CEV and processing this in the payroll, managing benefit changes and renewal prices mid-year
• Project planning and considerations working towards April 2026 go live

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.