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.