Employment Tax Update - October 2026

This bulletin follows the release of the August and September Agent Updates (Issue 146 and Issue 147). In this issue we cover the content most relevant to employment taxes and reward activities. 

Phased roll-out for mandatory payrolling of benefits in kind (BIKs)

• Employer clients and their agents should start having conversations to get ready for mandatory payrolling of BIKs. 
• From 6 April 2027, mandatory payrolling will apply only to company cars, car fuel, vans, van fuel and medical benefits (Phase 1). 
• In preparation for Phase 1 of mandatory payrolling, employers should:
  • make a list of all BIKs they offer to employees and would normally report to HMRC on a P11D form;
  • ensure their payroll software can handle real-time reporting for BIKs for Phase 1 and complies with HMRC’s requirements (this will need to be in place by April 2027);