The following has been issued by HMRC in readiness for Mandatory Payrolling Benefits in Kind.
Dear Expenses and Benefits Forum Members,
Thank you for the feedback you provided on the MPBiKs guidance. We wanted to let you know that the updated guidance was published.., Monday 9th November 2026, and your feedback has helped us strengthen and clarify the content ahead of publication.
In particular, we’ve added or improved guidance covering:
- the annual information employers need to provide to employees
- the treatment of taxable expenses and benefits covered by a PSA
- what employers should do where an employee leaves or has insufficient pay to collect the tax due
- the approach to penalties and interest for mandatory payrolling from April 2027
- the exception process for globally mobile employees, including when an exception starts and ends, corrections and bulk submissions.
We’ve also expanded the examples to cover more scenarios and improved the terminology and links to technical information where your feedback highlighted that greater clarity was needed.
Thank you again for taking the time to review the guidance and share your comments. Your feedback has been really helpful in shaping the updated guidance ahead of publication
What employers should do now
Employers should:
- review all benefits and expenses currently reported on forms P11D
- review your payroll, HR and benefits administration processes
- check that your payroll software provider has been set up for changes in reporting
You should tell your employees that:
- tax on payrolled benefits will be collected during the year through payroll
- their tax codes will not include adjustments for payrolled benefits
- they may see changes to their payslips and take-home pay
- they will not pay more tax because of this change
- you will give them an annual payrolled benefits statement after the end of the tax year
PAYadvice.UK 10/11/2026