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May 2025

When will the payrolling of benefits become mandatory? | Payrolling of benefits in kind 2027

HMRC previously announced that the new mandatory payrolling of benefits would be effective from 6 April 2026.  This has now been postponed to 6 April 2027. From 6 April 2027, employers will be required to include all taxable benefits in kind (currently excluding employer-provided living accommodation and beneficial loans) in their employees’ payroll, so that the tax is collected in real-time, via PAYE.