01/10/2026
Do you provide company cars or private medical insurance to your employees or directors?
From 6 April 2027, there are important changes coming to the way certain Benefits in Kind are reported to HMRC.
Company cars, car fuel, vans, van fuel and employer-provided private medical insurance will need to be reported through payroll in real time.
This is a change from the current system, where these benefits can generally be reported to HMRC after the end of the tax year via P11D reporting.
What should employers do?
If your business provides any of these benefits, make sure your accountant or payroll provider knows about them well before April 2027, particularly if different people currently deal with your payroll and year-end accounts.
Your payroll provider will need the relevant information to ensure the benefit is calculated and reported correctly through payroll from the start of the new tax year.
Other Benefits in Kind are due to follow under the new system from April 2028.
We will be contacting affected payroll clients nearer the time, but it is worth starting to prepare now so that nothing gets missed when the new rules come into effect.
