In January 2024, in their aim to simplify tax, the government announced its intention to make payrolling of benefits compulsory. HMRC are currently working with stakeholders, and draft legislation is expected in late 2024. If you work in payroll, process P11D’s or manage rewards and benefits, you will need to start preparing for the changes that mandatory payrolling benefits will bring.
Although payrolling is already an available option, P11Ds are still the most common way of handling benefits, however HMRC have confirmed that tax year 2025-2026 will be the last year P11D’s and P11D(b)’s will be accepted. From 2026-2027 onwards, payrolling will be the only option to submit benefit data in most cases. If the business is not ready for these changes by April 2026, employers may face penalties and much more.
Based on current guidance, this 3-hour course will provide clear details on how payrolling benefits works and how it differs from the P11D process. You will also get practical advice on the system changes that will be needed and how the new requirements should be explained and communicated to employees. Our expert presenter will use interactive examples and exercises to reinforce what we know so far and what you should be doing to prepare.
This course will discuss the following considerations.
- How will the benefit function need to change before 2026?
- How will the Cash Equivalent Value (CEV) be calculated in future?
- How will payroll be informed of mid-year changes?
- Who will calculate the benefit value to be processed?
- Will authorisation be required before the benefit can be changed?
- What steps do you need to take now and in the coming months?
- What do you need to consider when using payroll software to report benefits to HMRC? Is your current software up to the job?
- If employees make good, how will the details of the overall calculation be provided to them?
- If employees are in receipt of Universal Credit, will payrolling impact their assessments?
- Do employees need to tell HMRC if they have been provided with a new benefit in kind?
- What will be the effect on those using outsourced payroll services?
- What are the implications for bureaus and agents?
- What will happen to those benefits that cannot currently be payrolled at all?
The course is crucial for people with any Payroll or HR responsibility within their company. 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 help you ensure that you are getting good value for money from your agent and also make you aware of any 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.
The course assumes some prior understanding of payroll or HR. If you do not have this, you may wish to consider our full-day course The Essentials of UK Payroll Processing before attending this course.
