Employers need to be ready by April 2027 for new real-time benefit reporting rules, warns Tusker

Cheryl Clements, head of business development at Tusker, warned that with less than a year to the 5th April 2027 deadline, organisations need to get ready for new rules on payrolling benefits. 

The change means all employers must move away from P11D forms and start taxing benefits through payroll, including salary sacrifice car schemes, with tax deducted from employees’ pay in real time.

Clements said: “The P11D changes under mandatory BIK payrolling should reduce issues such as mistakes or incomplete reporting, creating a much smoother experience for everyone.

“It offers a great opportunity for employers to simplify their BIK reporting processes and reduce delays. 

“However, starting early is key to make sure organisations are fully prepared by the time April 2027 rolls around.”

The aim is to make benefit reporting more efficient and accurate, helping both employers and employees by cutting delays and errors. 

Any organisation not prepared could risk extra costs, more workload and penalties for late reporting to HMRC.

Tusker’s advised employees to keep informed, as payslips will look different and early communication will help avoid confusion about what action they need to take.