The new mandatory rules on reporting benefits in kind (BiKs) in real time will come into effect from 6 April 2027 for tax year 2027-28, but in the meantime HMRC is encouraging employers to sign up on a voluntary basis from the new tax year 2026-27, and is calling on accountants and payroll advisers to help clients with transition.

The real time reporting will be a major change, ushering in the end of annual P11Ds and will be mandatory for all sizes of business reporting benefits in kind expenses. However, there will be an initial one-year deferral for payrolling of loans and accommodation only. All other expenses will have to be reported in real time for tax year 2027-28.