Preparing for Mandatory Payrolling - An Essential Guide to Expenses, Benefits & Class 1A NICs

Introduction

The term ‘payrolling‘ simply means ‘via the payroll’. For example, when salaries are paid, they are payrolled and the statutory deductions are collected this way, all stemming back to the introduction of pay-as-you-earn (PAYE) back in 1944.

Paying tax as you earn is diversifying in 2027 to encompass taxable expenses and benefits. These will also be taxed as they are provided. This is not a new concept and employers have been able to voluntarily payroll expenses and benefits-in-kind (BIKs) since 2016. Accounting for tax through the payroll means there is no obligation on the employer to produce a P11D. This can be a simple transition for some employers (agents, bookkeepers, payroll bureaux etc). In practical terms for most, however, it is not simple at all.

This 6 part modular webinar series will provide a logical structured look at the topic, highlighting the preparations that need to be made and the many considerations ahead of April 2027. Each session will include links to relevant guidance.

Payrolling is billed as a simplification - it is anything but that!

What You Will Learn

This modular webinar series will cover the following:

Module 1: The New Rules

All topics need an introduction and this module will outline the current rules, moving onto the new mandatory payrolling rules for the real-time reporting of taxable expenses and BiKs. This includes the real-time accrual of Class 1A National Insurance Contributions (NICs). This sets the scene for the following sessions.

Module 2: All Expenses and BIKs for All?

Mandation in 2027 does not mean everything is impacted and this session details what can and can’t be payrolled and who is covered, which might mean bringing individuals onto the payroll that are not on the payroll now.

Module 3: Class 1A National Insurance and Payroll System Readiness

This session covers the real-time calculation, collection, and reporting of Class 1A National Insurance Contributions, leading onto payroll software considerations. After all, if software is not ready, payrolling will fail at the first hurdle.

Module 4: The Operational Considerations

Payrolling means the real-time reporting of taxable expense and BiKs information to HMRC. This sounds simple; however, real-time reporting means real-time gathering and collection of data and consideration of the pay reference periods.

Module 5: Payrolling in Practice

This session takes an employee through the payrolling process using various real-life examples and situations, which visually exposes the above real-life, real-time considerations.

Module 6: Practical Steps for Employers

This final session consolidates all the previous modules into practical steps for employers. This will outline the transitional issues as we move into tax year 2027/28 and highlight the need for communication strategies, all to avoid the many risk areas that accompany the new regime.

This pre-recorded webinar will be available to view from Monday 20th July 2026

Alternatively, you can gain access to this webinar and 2,300+ others via the MBL Webinar Subscription. Please email webinarsubscription@mblseminars.com for more details.