Budget 2024: Reporting and paying Income Tax and Class 1A NICs on benefits in kind in real-time

Confirming plans to mandate the reporting of benefits in kind via payroll software from April 2026

This note provides further clarification for employers, agents, payroll professionals and software providers on plans for mandatory payroll reporting of benefits in kind.

The technical note confirms that, from April 2026, it will be mandatory to payroll all benefits in kind except for employment related loans and accommodation. Payrolling for these two benefits will be introduced on a voluntary basis, also from April 2026, and the government will set out the next steps on when they will be mandated in due course.