HMRC have confirmed the treatment of globally mobile employees under mandatory payrolling of Benefits In Kind (BIKs) from 6 April 2027 and clarified the Class 1A National Insurance Contributions (NICs) position for employers who payroll benefits voluntarily.
From 6 April 2027, it becomes mandatory to report Income Tax and Class 1A National Insurance Contributions (NICs) on certain Benefits In Kind (BIK) in real time.
- Phase one comes into effect from 6 April 2027 and will include company cars, vans, fuel and medical benefits.
- Phase two will be rolled out from 6 April 2028 and will include all other benefits, excluding loans and accommodation.
For employers voluntarily payrolling BIKs not mandated in phase one, HMRC have confirmed that the Class 1A NICs position is as follows:
- From 6 April 2027, the employer must also payroll the associated Class 1A NICs in real time.
- The employer cannot payroll the Income Tax and report the Class 1A NICs separately at the end of the tax year.
- For 2026-27, Class 1A NICs on voluntarily payrolled BIKs are still reported through form P11D(b), by 6 July 2027.
HMRC have also confirmed that globally mobile employees will be exempt from mandatory payrolling from 6 April 2027.
- Employers can continue to report the benefits at the end of the tax year on Forms P11D and P11D(b), or choose to payroll them voluntarily.
- A new service to manage the exclusion is due from November 2026.
HMRC plan to publish more detailed guidance in Autumn 2026.
Useful guides on this topic
Payrolling of benefits
The value of certain taxable Benefits In Kind can be included in taxable pay when calculating the PAYE deducted from wages and salaries of employees.
Mandatory payrolling of benefits from 2027: Briefing
The government has announced that the mandatory payrolling of Benefits In Kind and taxable employment expenses will not come into force until 6 April 2027. This replaces the earlier date of 6 April 2026, allowing employers more time to prepare for the changes.
P11D: Reporting benefits and expenses
How do you report benefits and expenses? What is the P11D deadline?
P11Ds: Employers' checklist & top tips
Top Tips for employers on preparing form P11D together with a checklist.
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