Payrolling Benefits

The Chancellor confirmed in the Budget, that from April 2026, benefits provided by employers will have to be payrolled. This will be a major change to the administration of benefits in kind, removing the need to submit P11Ds in the majority of cases and speeding up the collection of tax and Class 1A NICs due on benefits provided to employees. It is the biggest change to payroll since the introduction of RTI and Auto Enrolment, and it will require changes to payroll software, training for staff, discussions with benefits providers and good communications with employees.

We know that HMRC intends to ask for more data on payslips for compliance purposes and that they are considering a soft landing for penalties for the first 12 months following mandation in April 2026, so there is just one tax year left to try payrolling benefits on a voluntary basis and the deadline to register with HMRC is 5 April 2025.

It is important that employers have a plan in place so that benefit and employee information flows from HR and benefits providers to payroll teams in good time to be processed each payday, and that a system of controls is in place to check the data and the tax collected.

What’s covered?

• An introduction to payrolling
• How to register
• Frequently asked client questions
• Feedback from existing users of this service
• Synergy with employee benefit salary sacrifice schemes (cars, medical benefits, etc)
• Examples of benefit calculations, including the ‘tricky stuff’
• Points to note

• The cost of the training courses is £210 plus VAT per course for S3TAX subscribers and £250 plus VAT per course for other delegates.
• There is a 10% discount for more than one booking.
• If you book and subsequently find that you cannot attend, please email admin@s3tax.co.uk.
• Please confirm your bookings as soon as possible.