The days of filing P11D forms are numbered.
From 2027, all Benefits in Kind (BIK) will need to be payrolled meaning tax and National Insurance Contributions will be handled in real-time through payroll, rather than reported annually.
For many employers, this represents a big shift in how employee benefits are managed. While 2027 might sound like plenty of time, the reality is that planning ahead will save you stress, confusion, and cashflow headaches later.
What’s Changing?
Currently, many businesses only deal with Benefits in Kind once a year when it’s time to file P11D forms. These forms list any benefits employees have received that aren’t included in their salary — such as company cars, medical insurance, or gym memberships.
From 2027, these benefits will be processed through payroll instead, meaning:
- You’ll pay any tax and NIC monthly, just like standard salary payments.
- Employees will see their benefits reflected on their payslips.
- The end-of-year P11D process will be phased out entirely.
This means benefits will no longer be a once-a-year concern — they’ll become part of your monthly payroll routine.
Why It Pays to Prepare Early
While the change may feel far off, now is the time to get ahead. Transitioning early gives you time to:
- Review how your benefits are currently managed.
- Identify any payroll software or process updates you’ll need.
- Communicate clearly with employees about what will change and how it affects them.
- Avoid the last-minute rush that often comes with regulatory changes.
Careful preparation will make sure the transition has no negative impact on your cashflow — and helps your team feel informed and supported every step of the way.
Not Sure Where to Start?
We’ve put together a free downloadable guide to help you navigate the upcoming changes with confidence.
Inside, you’ll find:
✅ A breakdown of what’s changing and when
✅ Practical steps for transitioning to payrolling Benefits in Kind
✅ Guidance on compliance and cashflow management
✅ Insights on how early adopters are benefiting
Don’t Wait Until 2027 — Get Prepared Today
The countdown to mandatory payrolling has already begun. The earlier you start planning, the smoother your transition will be.
Make sure your business is ready to embrace the changes — not scramble to catch up.