Payrolling Expenses & Benefits - Voluntary Becomes Mandatory in Phases

Introduction

Employers have been able to payroll expenses and benefits on a voluntary basis since 2016. To remove the annual obligation to complete the P11D, the taxable value of the expense / benefit is processed through the payroll. It was only a matter of time before voluntary became mandatory:

• In January 2024, the UK Government announced the voluntary process would become mandatory from April 2026;
• This was confirmed at UK Budget in October 2024 on a ‘phased’ basis, delayed until April 2027. However, the delay from April 2026 only delayed the big bang / cliff edge situation of P11D administration to payroll administration;
• In June 2026, HMRC announced true phasing, introducing payrolling in a logical and structured way

Payrolling has always been billed as a simplification for employers, yet even phasing cannot disguise the fact that the move from voluntary to mandatory is anything but simple and there remain many questions.

For payroll and HR professionals, agents, bookkeepers and accountants, April 2027 may seem a long way away for the start of phasing. Yet, this is a major change project that requires logical explanation with practical advice.

What You Will Learn

This short webinar will cover the following:

• What is payrolling?
• What is phasing?
• Class 1A National Insurance via payroll
• The changes required, internally and with external stakeholders
• The software implications, and
• The essential communications and engagement