Real-time reporting of benefits clarification

In last month’s Budget the government announced some updates to the proposals to mandate the reporting of benefits in kind through payroll software from April 2026. HMRC has confirmed the main adjustments in its latest agent update as follows.

The department has confirmed that from April 2026 there will be a phased approach to the benefits in kind that employers will be required to report in real time through payroll software. The upshot is that most benefits will have to be reported this way with the exception of employment-related loans and accommodation.

Employers will be able to report these through payroll software on a voluntary basis but a modified P11D and P11D(b) will be available to report loans and accommodation if they do not wish to payroll these. HMRC says it has not decided as to when it will mandate the reporting of loans and...