With HMRC set to introduce mandatory reporting of Payrolling Benefits in Kind (PBIK) by April 2026, employers are urged to prepare in advance to ensure a smooth transition. Understanding the intricacies involved in this shift is vital ...
Leveraging advanced payroll software can help you prepare for mandatory reporting in 2026!
Did you know that payrolling benefits have been available on a voluntary basis since April 2016? This has allowed the reporting of most employee benefits through Real Time Information (RTI). However, as mandatory reporting approaches, if you haven't yet adopted this system, you'll need to take prompt action to avoid compliance issues.
"The upcoming changes were announced in the Autumn Budget of 2024!"
To begin preparing for mandatory reporting, you should first assess your current understanding and usage of PBIK. Reviewing your existing payroll systems will help you to identify any necessary upgrades or changes that will facilitate seamless reporting.
Next, it is crucial to communicate these changes to your employees and directors. Awareness can foster understanding and acceptance, making it easier for your staff to adjust to the new reporting practices.
Leveraging advanced payroll software can help eliminate errors, enhance efficiency, and streamline reporting procedures. Taking a proactive approach to integrating technological solutions means you are better equipped to handle the complexities of mandatory reporting when the time comes.
It is certainly worthwhile conducting a thorough review of the benefits you currently offer to your team. This evaluation can highlight which benefits must be reported and assist in determining the implications for overall payroll taxes.
"Preparation is the key to ensuring compliance and preventing last-minute complications!"
With mandatory reporting looming on the horizon, understanding the requirements, and assessing your current systems, you can ensure compliance and cultivate a positive environment for your employees.
Next year will be crucial for implementing these strategies effectively.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about mandatory reporting of Payrolling Benefits in Kind, it could be a great idea to call me on 01908 774320 and let's see how I can help.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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