Do I need to register for payrolling benefits?
No need to panic, HMRC will automatically register all employers for payrolling benefits from April 2027. However, if you want to switch sooner, you’ll need to register voluntarily via your Government Gateway account by 5 April 2026 to start payrolling benefits from the 2026/27 tax year.
Will I still need to submit P46 (car) forms?
No. If you’re payrolling company cars, you won’t need to submit P46 (car) forms anymore. Instead, the taxable benefit details will be included in your FPS submission each month, keeping everything streamlined.
How do I handle benefits that fluctuate, like staff purchases?
If a benefit changes from month to month, you’ll need a robust process to track adjustments. Some employers choose to estimate and reconcile later, but real-time accuracy is preferred to avoid under or over-taxing employees.
Do employees need to be informed about the change?
While there’s no legal requirement, we strongly recommend keeping employees in the loop. Without clear communication, employees may be confused by the tax deductions on their payslips. Giving them a heads-up now will prevent queries later down the line.
What happens to Pay Settlement Agreements (PSAs)?
PSAs aren’t affected by this change. If you use them for things like trivial benefits or staff events, you can continue as normal.
I already payroll some benefits, but I’m adding more. Do I need to tell HMRC?
Yes! If you’re adding new benefits to payroll, you need to update your HMRC registration before the start of the new tax year (5 April 2026 if you’re opting in early). You can do this via Government Gateway. If you're not planning to payroll the additional benefits until April 2027, then there's no need to register as this will be an automatic change from April 2027.
