Author: GRO FIRM

The UK is moving towards a mandatory system for payrolling benefits in kind (BIK), with reforms scheduled to take effect from 6 April 2027. This represents a significant change in how employee benefits such as company cars, private medical insurance, and other non-cash perks are taxed and reported. Instead of being managed mainly through year-end reporting, these benefits will increasingly be processed through payroll in real time, affecting both tax calculation and payroll workflows. What Is Changing with Payrolling Benefits in Kind? The core change is the move from annual reporting to in-year taxation. Under the current system, many employers…