HMRC Brings Benefits-in-Kind Into RTI Payroll

HMRC is pushing benefits-in-kind into live payroll reporting, forcing tighter data controls and reducing year-end P11D cleanup.

Updated

What is this trend?

HMRC is moving benefits-in-kind into real-time payroll reporting, making tax and Class 1A NIC calculations happen during the pay cycle instead of at year-end.

  • Mandatory payrolling via RTI starts 6 Apr 2027 for cars, fuel, vans, medical benefits
  • Most other benefits follow in Apr 2028, shrinking the P11D/P11D(b) process
  • Payroll, fleet, HR, and medical data must stay synchronized each pay period
  • Errors shift from year-end cleanup to live reporting and tax calculation risk

What’s the latest?

HMRC’s proposal makes benefits-in-kind a live payroll data problem with fixed dates: mandatory payrolling via RTI starts 6 April 2027 for company cars, car fuel, vans, van fuel, and employer-provided

HMRC brings benefits-in-kind into RTI payroll, ending P11D rush and tightening pay-run data

How it developed

  1. Human-approved AI, governed continuous close, and transaction-level compliance reshape accounting controls

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