HM Revenue and Customs is phasing out annual Benefit-in-Kind reporting for company cars. The changes starting from 6 April next year and, with draft legislation not due until 2025, many fleets are facing short deadlines to comply with those changes. Starting with the 2026/27 tax year, employers must report the value of any workplace benefits to HMRC through their payroll software and collect any tax at the same frequency as employees are paid – even if that’s weekly.
Ensuring quality data and a robust approach to collate, validate and process that data is critical.” The reforms also affect salary sacrifice schemes, where employees pay the monthly lease cost out of their pre-tax salary and plus Benefit-in-Kind for the use of the vehicle. Cheryl Clements, head of business development at Tusker, says payrolling benefits gives drivers more transparent, predictable monthly costs while reducing the risk of backdated tax bills.