Removing the need to report benefits on P11D forms: What Employers Need to Know for April 2026

11 Jul 2024

As an employer, staying ahead of regulatory changes is essential for maintaining compliance and ensuring smooth operations. One such significant change on the horizon is the removal of the need to report benefits on P11D forms, set to take effect from April 2026. This shift marks a major overhaul in how benefits and expenses are reported, impacting both employers and employees. Here’s what you need to know to prepare your business for this transition.
Understanding P11D and the Upcoming Changes

The P11D form has been a staple of the UK’s tax system, used by employers to report benefits and expenses provided to employees and directors. These benefits can include company cars, private medical insurance, health cash plans, group critical illness insurance and interest-free loans, among others. However, the government has announced plans to streamline this process, removing the P11D form entirely from April 2026.

Why the Change?

The rationale behind this move is to simplify the tax system and reduce administrative burdens for businesses. By eliminating the P11D form, the government aims to:

  • Transition towards real-time reporting of benefits via payroll, making the process more efficient and transparent.
  • Minimise the risk of errors that can occur with annual reporting, leading to more accurate tax and National Insurance contributions.
  • Simplify compliance requirements, making it easier for employers to meet their obligations.

Key Implications for Employers

The removal of P11D benefits will have several implications for employers:

  1. Real-Time Information (RTI) Adjustments:

Employers will need to adjust their payroll systems to accommodate real-time reporting of benefits. This may require updating software and processes to ensure that all benefits are accurately recorded and reported as they are provided.

  1. Training and Awareness:

It’s crucial to train your payroll and HR teams on the new requirements. Understanding how to report benefits in real-time will be essential for maintaining compliance and avoiding penalties.

  1. Policy Reviews:

Review your current benefits policies to ensure they align with the new reporting requirements. This might involve reassessing how benefits are offered and managed within your organisation. This is an area that Wingate Benefit Solutions can assist with as we are experts in this highly complicated field.

  1. Employee Communication:

Keep your employees informed about the changes and how they will affect the reporting of their benefits. Clear communication will help manage expectations and reduce confusion.

  1. Software and Systems Upgrade:

Ensure that your payroll software is updated to handle real-time reporting. Many payroll providers will likely release updates or new features to accommodate these changes, so staying informed about these developments is crucial.

Conclusion

The removal of P11D benefits from April 2026 represents a significant change for employers. By preparing now, you can ensure a smooth transition and continue to provide valuable benefits to your employees while remaining compliant with HMRC regulations. Embrace this change as an opportunity to streamline your processes, reduce administrative burdens, and enhance the overall efficiency of your payroll system. Stay informed, plan ahead, and your business will be well-equipped to handle the future of benefits reporting.

For further information and updates, keep an eye on HMRC announcements and guidance as we approach the implementation date.

As referenced above, Wingate Benefit Solutions can help you with the employee benefits element of these changes and if you would like to discuss this further, please reach out to your normal contact at Wingate or email us at info@wingatebs.com or call 01883 332260.

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