Around 3,000 employers already tax through payroll the benefits in kind that they provide to their employees, but each of these arrangements is by pragmatic agreement with HMRC rather than because the law allows it. Many large employers that operate flexible benefit schemes see taxing through payroll rather than P11D as much more practical, as it removes delays to coding adjustments and everybody knows where they stand at a much earlier point. HMRC would prefer many more employers to payroll benefits and reduce the volume of P11Ds and coding notices.