Legislation
Delays to mandatory payrolling Benefits in Kind
Date
Expected April 2026
Summary
The long-anticipated switch to mandatory payrolling of Benefits in Kind (BIKs) has been pushed back.
Originally expected to come into force from April 2026, HMRC has confirmed that employers now have until April 2027 to get ready.
That includes the payrolling of beneficial loans and accommodation, which will also remain optional until the new deadline.
This extension follows feedback from payroll professionals, software providers, and employers asking for more time to prepare.
HMRC has responded by delaying implementation and promising closer engagement with stakeholders throughout the process.
A new technical note outlines how the system is expected to operate day to day, including less common scenarios that may need additional attention. But while this gives us a clearer picture, policy positions are still being finalised. Draft legislation, technical guidance, and further updates are expected from Autumn 2025.
In the meantime, employers already payrolling BIKs voluntarily can continue as normal. And if you’ve not yet started, you’ve now got a little extra breathing space. Just be mindful that the clock is still ticking.
Payroll legislation guide
May – June 2025 edition Do you know the dates of all the complex payroll legislation changes? Are you aware of what you need to do to ensure your business is compliant?…