HMRC Brings Benefits-in-Kind Into RTI Payroll

HMRC is pushing benefits-in-kind into real-time payroll, forcing tighter data coordination and reducing year-end reporting work.

Updated

What is this trend?

HMRC is moving benefits-in-kind into real-time payroll reporting, shifting tax and Class 1A NIC from year-end forms to each pay period.

  • Payrolling BiK via RTI starts 6 Apr 2027 for cars, fuel, vans, van fuel, and medical benefits.
  • Most other benefits follow in April 2028, reducing reliance on P11D and P11D(b) filings.
  • Payroll, HR, fleet, and benefits data must be synchronized to calculate tax as benefits arise.
  • The change reflects a wider move toward continuous, transaction-level tax compliance.
  • Accounting teams need stronger controls and exception handling, not just year-end cleanup.

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

Agentic Close Goes Live, Continuous Accounting Tightens Control, and Governed AI Reshapes Audit

How it developed

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

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

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