HMRC delays full introduction of mandatory payrolling for benefits in kind
HMRC delays full introduction of mandatory payrolling for benefits in kind
Commenting on the news that there is now to be a phased introduction of mandatory payrolling for benefits in kind, Caroline Harwood, BDO’s head of employment tax said:
“The mandatory payrolling of all benefits in kind was due to come into force from April 2027. However, HMRC has now announced that this will be introduced in phases. While mandatory payrolling of company car, car fuel, vans, van fuel and employer-provided medical benefits will be introduced from April 2027, most other benefits in kind will be added from April 2028.
“This is just the latest example of HMRC’s inability to effectively deliver a major change programme on time.
“This half-way house solution won’t help anyone. It will put extra pressure on employers who will now have to contend with two systems rather than one. It will also lead to confusion among taxpayers as to why their payslip has changed for some but not necessarily all benefits, what their tax code means, and what to expect during and at the end of the tax year.
“There is a strong argument to say that the whole scheme should be postponed until such time as HMRC is ready to implement the payrolling of all benefits in kind at the same time.”
ENDS
Note to editors
BDO UK operates in 17 offices across the UK, employing 8,000 people. It has UK revenues of £1bn.
It provides Audit, Tax, Deals, and Consulting, Risk & Outsourcing services predominantly to the entrepreneurial, ambitious and growing mid-sized businesses that are driving growth in the UK economy. BDO calls this segment of the market the UK’s economic engine.
BDO LLP is the UK member firm of the BDO international network.
BDO’s global network
The BDO global network provides business advisory services in 169 countries and territories, with 95,000 people working out of 870 offices worldwide. It has revenues of US$11bn.
Contacts
Frank Shepherd
Senior PR Manager
BDO
07812 463601
frank.x.shepherd@bdo.co.uk
Press office
media@bdo.co.uk
www.bdo.co.uk