Episode overview
From April 2027 all Benefits in Kind provided by employers to their Directors or staff will be taxed very differently. James is joined by payroll specialist Jordan Guymer to consider the upcoming changes to the way Benefits are reported and what employers need to do ahead of time to be fully compliant by April 2027.
Episode summary
In this episode of Summing Up, James is joined by payroll specialist Jordan Guymer to discuss the upcoming changes to the taxation of Benefits in Kind (BIKs). With mandatory payrolling of benefits due to take effect from April 2027, the episode explains how the current P11D reporting system works, why the changes are being introduced, and what employers need to do to prepare.
Jordan outlines the impact the new rules will have on both employers and employees, including real time tax reporting, payroll administration requirements, and the importance of communicating changes effectively. The discussion also covers common Benefits in Kind, payroll software considerations, and the practical steps organisations can take during the transition period to ensure compliance ahead of the 2027 deadline.
Key takeaways
Mandatory payrolling of Benefits in Kind will begin from April 2027.
The traditional P11D process will be replaced by real-time payroll reporting.
Employers should review their payroll processes well before the changes take effect.
Employees may see tax on benefits collected more accurately throughout the year.
Payroll software and internal systems may need updating to support the new requirements.
Early planning and clear communication will help ensure a smooth transition.
Chapters
00:00 – Introduction
00:48 – Mandatory payrolling of benefits in kind from April 2027
01:13 – What are benefits in kind?
02:08 – How benefits in kind are currently taxed via P11D
04:36 – Key changes: live reporting via monthly payroll
05:11 – Impact on employees and tax timing
06:56 – Employer obligations and monthly administration
08:59 – Support options: in-house advisory versus outsourcing payroll
10:05 – Transition timeline and opt-in status
10:44 – Communicating changes to staff and software compliance
12:20 – Non-salaried directors and reporting obligations
13:51 – Practical steps to prepare ahead of April 2027
14:45 – Wrap up and final thoughts
Guest bio
Jordan Guymer is a Manager in the Lovewell Blake Corporate Services team, specialising in audit, accountancy and compliance services for businesses.