In an aim to simplify tax, the payrolling of benefits will become compulsory from April 2026, with draft legislation expected later this year. HMRC have confirmed that the 2025-2026 tax year will be the last year that P11D’s and P11D(b)’s will be accepted.
This is a significant change to the benefits function and you will need to start preparing for the changes that mandatory payrolling will bring. There are critical procedural and operational questions that will need to be addressed in advance and it is important that you understand how payrolling benefits works before doing so.
Based on current guidance, this 3-hour course will clearly explain the payrolling benefits process, highlighting how it differs to the P11D process. You will get practical advice on the system changes that will be needed and how the new requirements should be explained and communicated to employees. The session will also guide you through the process of voluntarily payrolling in 2025, which is something you may wish to do either in full or on a test basis as part of your preparations. Our expert presenter will use examples to reinforce what we know so far and what you should be doing to prepare.
This course will discuss...
- How the benefit function will need to change before 2026
- How payrolling differs to P11D reporting
- The P11D(b) – how do you report Class 1A NIC owed when payrolling?
- Calculating the Cash Equivalent Value (CEV) – will this change?
- Registering to payroll benefits
- Using payroll software to payroll benefits - is it up to the job?
- Practical considerations when payrolling
- Dealing with amendments to benefits
- New starters and leavers
- OpRAs?
- Communicating to employees – what should you tell them?
- The operational impact
- Procedural changes that should be addressed
- If you outsource payroll, what do you need to do and what should you be asking your payroll bureau?
- Exceptions to reporting
If you work in payroll, process P11D’s or manage rewards and benefits, this course is critical to helping you perform your role in the future. It will benefit anyone with any Payroll, Finance or HR responsibility within their organisation.
Whether you run your payroll in-house or outsource it to an agent – you will benefit a great deal from attending this course. If you outsource your payroll, this course will make you aware of the questions you need to ask and the changes that still need to be implemented by employers rather than their agents.
It is also perfect for the payroll agents themselves, who are looking to ensure that the payroll service they are providing for their clients is fully compliant.
