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Benefits & Expenses

P11Ds and payrolling benefits in kind

We prepare P11Ds today and get you ready for mandatory payrolling of benefits from April 2027.

0161 823 8363

In short

Buffalo Payroll prepares P11D and P11D(b) forms for UK employers, due to HMRC by 6 July, and sets up payrolling of benefits in kind. Payrolling becomes mandatory for most benefits from April 2027, and we give a fixed quote up front.

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Benefits reporting is changing

At the moment, most employers report benefits such as company cars and private medical cover on P11D forms after the tax year ends. That's changing. According to HMRC, from April 2027 company cars, car fuel, vans, van fuel and employer-provided medical benefits must be reported and taxed through payroll in real time, with most remaining benefits following from April 2028.

How we help

  • P11D and P11D(b) preparation and submission for the current tax year
  • Class 1A National Insurance calculations
  • Reviewing which of your benefits fall into the April 2027 phase
  • Setting up benefits in your payroll so tax is collected each pay period
  • Wording for staff about how their take-home pay will change

Act before April 2027

HMRC will remove the mandated benefits from employees' tax codes ready for April 2027, so employees will start paying tax on them through their payslip. Staff need clear warning, and payroll needs the right values loaded from the first pay period. Read our full guide to payrolling benefits in kind.

Common Questions

Frequently asked questions

Will P11Ds disappear in April 2027?

Not entirely. For 2027/28 only company cars, car fuel, vans, van fuel and medical benefits are mandated through payroll. Most other benefits follow from April 2028, while loans and accommodation remain voluntary for now.

Do I need to register to payroll benefits from April 2027?

Not for the mandated benefits. Registration is only needed if you want to voluntarily payroll other benefits such as loans or accommodation, using an HMRC service opening in November 2026.

Will there be penalties for mistakes in the first year?

HMRC has said it will not charge penalties for inaccuracies related to mandatory payrolling in 2027/28 unless there is evidence of deliberate non-compliance. Normal late filing and late payment penalties still apply.

Ready for refreshingly simple payroll?

Tell us about your business and we'll come back to you within one business day with a clear quote. No obligation, no hard sell.

0161 823 8363