In short
From 6 April 2027, employers must payroll company cars, car fuel, vans, van fuel and medical benefits, with no registration needed. To payroll any other benefits voluntarily, such as loans or accommodation, employers must register using HMRC's service, which opens in November 2026. The deadline is 5 April 2027, and Class 1A National Insurance on those benefits must then be paid through payroll too.
Mandatory payrolling of benefits in kind starts on 6 April 2027, less than six months away. HMRC is now urging employers and their agents to prepare, and a key registration window opens next month.
What has to be payrolled from April 2027
From 6 April 2027 to 5 April 2028, mandatory payrolling applies only to company cars, car fuel, vans, van fuel and medical benefits, according to HMRC's August 2026 Employer Bulletin. Mandatory payrolling for most other benefits follows from April 2028. Employers don't need to register to payroll these five benefits, according to HMRC's guidance on getting ready.
November 2026: registration for other benefits
If you want to payroll benefits that aren't in the first phase, including employment-related loans and accommodation, you must register. HMRC's service goes live in November 2026 and the deadline is 5 April 2027, according to GOV.UK. HMRC encourages employers to register as soon as it opens.
Employers already registered for voluntary payrolling continue automatically for 2027/28. If you don't want to carry on, you must withdraw by 5 April 2027, according to HMRC's Agent Update issue 147.
Class 1A National Insurance moves into payroll too
From 6 April 2027, employers who voluntarily payroll benefits must also pay the Class 1A National Insurance on them through payroll. You can't payroll the tax and report the Class 1A separately at year-end on a P11D(b), according to Agent Update issue 147. That changes your monthly payments to HMRC, so plan for it in cash flow.
Globally mobile employees
Globally mobile employees are exempt from mandatory payrolling. To exclude them, employers submit an online form that HMRC will make available in November 2026, and keep reporting their benefits on P11D and P11D(b), according to HMRC's interim guidance.
What to do before April 2027
- List every benefit you currently report on a P11D, and which employees get them.
- Get the cash equivalent value for each company car, van and medical policy for 2027/28.
- Decide whether to payroll other benefits voluntarily, and register from November if you do.
- Tell affected employees that tax on their benefits will come through their payslip, not their tax code.
Our full guide to payrolling benefits in kind explains how the change works in more detail.
Want it handled for you? Buffalo Payroll can set up payrolling of benefits and keep P11Ds for anything left over. See our P11D and benefits in kind service.
This article is general information based on official sources at the date of publishing, not legal or tax advice. Rules can change, so check the linked guidance or talk to us about your payroll.