HMRC updates interim guidance on the phased introduction of payrolling of benefits in kind

HMRC has updated its interim guidance on the introduction of mandatory payrolling of benefits in kind. The UK Government has decided to implement the changes in two phases, starting on 6 April 2027, rather than through a single implementation.

The UK Government has decided to introduce mandatory payrolling of benefits in kind in two phases, rather than in one go. This decision follows concerns raised with ministers and senior HMRC officials, as well as wider stakeholder feedback. 

HMRC has released updated interim guidance setting out that mandatory payrolling will initially apply only to company cars and car fuel, vans and van fuel, and medical benefits.

Mandatory payrolling for most other benefits in kind will follow from 6 April 2028. As noted in the guidance, the payrolling of loans and accommodation benefits will remain voluntary. 

Employers will also be able to register from November 2026 to voluntarily payroll other non-mandated benefits, including loans and accommodation, for the 2027/28 tax year. 

HMRC has indicated that it intends to update this interim guidance further in July 2026.

Read the guidance

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