{"id":23063,"date":"2026-06-26T09:54:55","date_gmt":"2026-06-26T08:54:55","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=23063"},"modified":"2026-10-15T10:28:48","modified_gmt":"2026-10-15T09:28:48","slug":"what-are-payrolling-benefits-in-kind","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/what-are-payrolling-benefits-in-kind\/","title":{"rendered":"Payrolling benefits in kind: What\u2019s changing from April 2027 and April 2028"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tPayrolling benefits in kind: What\u2019s changing from April 2027 and April 2028\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tLearn what payrolling benefits in kind means, how it works, and how to stay compliant with all the new BiK changes with simple, actionable steps for your HR team.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col col-8 col-lg-4 entry-header__image\">\n\t\t\t<figure class=\"entry-header__thumbnail js-hero-section\">\n\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-961279906-1440x810.jpg\" class=\"entry-header__thumbnail-image\" alt=\"managing payroll tasks for the business\" fetchpriority=\"high\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-961279906-1440x810.jpg 1440w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-961279906-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-961279906-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-961279906-1536x864.jpg 1536w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-961279906-2048x1152.jpg 2048w\" sizes=\"(max-width: 1440px) 100vw, 1440px\" \/>\t\t\t<\/figure>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-06-26T09:54:55+01:00\">26 June, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Payrolling benefits in kind: What\u2019s changing from April 2027 and April 2028\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/what-are-payrolling-benefits-in-kind\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/ashleyhindsmansage\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/02\/Ashley-Thompson-350x350.jpg\" class=\"entry-author__image\" alt=\"Ashley Thompson\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/02\/Ashley-Thompson-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/02\/Ashley-Thompson.jpg 600w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Ashley Thompson<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n<section id=\"key-takeaways\" class=\"wp-block-sage-key-takeaways\"><div class=\"sage-key-takeaways__inner\"><h2 class=\"wp-block-heading has-h-3-font-size\">Key takeaways<\/h2>\n<ul class=\"wp-block-list\">\n<li><strong>HMRC has confirmed<\/strong> <strong>payrolling benefits in kind is becoming mandatory in two phases<\/strong>: from 6 April 2027 for certain kinds, and from 6 April 2028 for most others.<\/li>\n\n\n\n<li><strong>Loans and employer-provided accommodation stay outside the<\/strong> mandatory rules for now.<\/li>\n\n\n\n<li><strong>For most BiKs, taxes move from an estimated tax-code adjustment <\/strong>to a real-time deduction each pay period.<\/li>\n\n\n\n<li><strong>You won&#8217;t need to register with HMRC<\/strong>. <\/li>\n\n\n\n<li><strong>The P11D and P11D(d) are not disappearing overnight<\/strong> and might still be needed.<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n<p class=\"wp-block-paragraph\">From company cars to gym memberships, offering employee perks as part of their employment with you is a proven way to <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/employee-experience\/\" target=\"_blank\" rel=\"noreferrer noopener\">boost retention and engagement<\/a>. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the UK these are referred to as benefits in kind. Usually employees pay a discounted cost of some kind, as part of a scheme provided by a third party and operated through your payroll. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For several years now, the government has been saying that reporting benefits in kind as part of payroll will become mandatory. The old way of reporting them on a P11D form after tax year end will be phased out.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But, as you might expect, it&#8217;s not been quite as clear cut as it might&#8217;ve been, and the rules have chopped and changed since the initial announcement. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The good news? It&#8217;s now all firmed-up. As per <a href=\"https:\/\/www.gov.uk\/guidance\/draft-guidance-and-legislation-to-aid-preparation-for-reporting-benefits-in-kind-in-real-time\" target=\"_blank\" rel=\"noreferrer noopener\">announcements made in June 2026<\/a>, a first group of benefits in kind must be payrolled from April 2027, with most others following in April 2028.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And now\u2019s the time to get ahead of the curve. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this article, you\u2019ll learn what payrolling benefits in kind means, how it differs from traditional P11D reporting, when each change takes effect, and what steps you need to take to stay compliant. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s what we cover:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-does-payrolling-benefits-in-kind-mean\" data-level=\"2\">What does payrolling benefits in kind mean?<\/a><\/li><li><a href=\"#h-common-types-of-benefits-in-kind\" data-level=\"2\">Common types of benefits in kind<\/a><\/li><li><a href=\"#h-why-is-payrolling-benefits-in-kind-becoming-mandatory\" data-level=\"2\">Why is payrolling benefits in kind becoming mandatory?<\/a><\/li><li><a href=\"#h-what-s-changing-with-bik-and-when\" data-level=\"2\">What&rsquo;s changing with BiK, and when<\/a><\/li><li><a href=\"#h-do-you-need-to-register-for-payroll-bik\" data-level=\"2\">Do you need to register for payroll BiK?<\/a><\/li><li><a href=\"#h-why-do-businesses-offer-benefits-in-kind\" data-level=\"2\">Why do businesses offer benefits in kind?<\/a><\/li><li><a href=\"#h-how-to-payroll-benefits-in-kind\" data-level=\"2\">How to payroll benefits in kind<\/a><\/li><li><a href=\"#h-tips-for-setup-and-employee-communication-of-payrolling-benefits-in-kind\" data-level=\"2\">Tips for setup and employee communication of payrolling benefits in kind<\/a><\/li><li><a href=\"#h-how-payroll-software-can-help-with-payrolling-benefits-in-kind\" data-level=\"2\">How payroll software can help with payrolling benefits in kind<\/a><\/li><li><a href=\"#h-common-mistakes-to-avoid-when-payrolling-benefits\" data-level=\"2\">Common mistakes to avoid when payrolling benefits<\/a><\/li><li><a href=\"#h-planning-ahead-what-to-do-now-for-payrolling-benefits-in-kind\" data-level=\"2\">Planning ahead: What to do now for payrolling benefits in kind<\/a><\/li><li><a href=\"#h-frequently-asked-questions\" data-level=\"2\">Frequently asked questions<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-what-does-payrolling-benefits-in-kind-mean\" class=\"wp-block-heading\">What does payrolling benefits in kind mean?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-payroll-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Payrolling<\/a> benefits in kind (BiKs) means fully processing the tax on employee benefits through your payroll.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s what&#8217;s new as of 2027, and it means the employer adds the cash equivalent for the benefit to taxable pay each period, so the correct taxes are collected in real time\u2014and listed on the payslip.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Compare that to how things are done up until now. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC collects the income tax for the benefits in kind by adjusting the employee&#8217;s tax code. The tax code is retrospectively adjusted based on the value of&nbsp;the benefits reported on the P11D, for the previous tax year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Effectively, as of 2027 the tax and employer <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/employers-national-insurance-contributions\/\" target=\"_blank\" rel=\"noreferrer noopener\">National Insurance contributions<\/a> (NICs) for benefits in kind move to real-time, and as such, the P11D form (and its sibling, the P11D(b) form) should no longer be required.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This gives employees more visibility into what\u2019s being taxed and when. HMRC suggests it will save you time and admin effort, especially following the end of the tax year but commentators have suggested the admin burden for payroll managers could increase due to managing benefits throughout the year, instead of one point after the year end. This should be borne in mind when planning workloads.<\/p>\n\n\n\n<h2 id=\"h-common-types-of-benefits-in-kind\" class=\"wp-block-heading\">Common types of benefits in kind<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Some of the most common <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-benefit-in-kind\/\" target=\"_blank\" rel=\"noreferrer noopener\">benefits in kind<\/a> include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Company cars and fuel, including electric vehicles (EVs)<\/li>\n\n\n\n<li>Private or dental medical insurance<\/li>\n\n\n\n<li>Mobile phones, other gadgetry, and even broadband<\/li>\n\n\n\n<li>Gym memberships or wellness subscriptions<\/li>\n\n\n\n<li>Non-cash vouchers.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Not every benefit is treated the same way under the new rules. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As you\u2019ll see below, some must be payrolled from April 2027, others from April 2028, and a couple\u2014such as interest-free or low-interest loans and employer-provided accommodation\u2014remain sat outside the mandatory regime altogether until further notice.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s worth reviewing what you currently offer and checking it against HMRC\u2019s guidance to see where each benefit lands.<\/p>\n\n\n\n<h2 id=\"h-why-is-payrolling-benefits-in-kind-becoming-mandatory\" class=\"wp-block-heading\">Why is payrolling benefits in kind becoming mandatory?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This move is all about making things simpler and more transparent. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Employees can see the impact of their benefits on their pay in real time, and employers can reduce the year-end reporting burden.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s part of HMRC\u2019s wider push towards real-time tax reporting\u2014the same direction of travel behind PAYE, RTI payroll, and Making Tax Digital.<\/p>\n\n\n\n<h2 id=\"h-what-s-changing-with-bik-and-when\" class=\"wp-block-heading\">What\u2019s changing with BiK, and when<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Following feedback from employers, payroll professionals and software providers, HMRC confirmed in June 2026 that mandatory payrolling will be introduced in phases rather than all at once. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s how the timeline looks:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Phase 1 \u2014 from 6 April 2027:<\/strong> Payrolling becomes mandatory for company cars, car fuel, vans, van fuel, and employer-provided medical (and dental) benefits. The Income Tax and Class 1A National Insurance on these benefits must be reported and paid in real time through your payroll.<\/li>\n\n\n\n<li><strong>Phase 2 \u2014 from 6 April 2028: <\/strong>Most remaining benefits, such as gym memberships, non-cash vouchers and mobile phones outside the exemption, move into mandatory payrolling.<\/li>\n\n\n\n<li><strong>Loans and accommodation: <\/strong>Interest-free or low-interest loans and employer-provided living accommodation stay outside the mandatory regime for the foreseeable future. You can continue to report them on a P11D, or payroll them voluntarily if you choose. HMRC has said it will publish a timetable for bringing these in at a later date.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">So, the question you might be asking: What happens to the P11D?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It isn\u2019t disappearing overnight. You\u2019ll still need to file P11D and P11D(b) forms for 2025\/26 and 2026\/27, and for any benefits that aren\u2019t yet in scope during 2027\/28. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In practice, many employers will run payroll reporting and P11D reporting side by side through the transition. Moving loans and accommodation voluntarily to payroll reporting might seem to make sense, but the reason they remain optional is due how the benefit value is calculated. Payroll managers will only know the true value at the end of the tax year, so payrolling these benefits would likely require adjustments throughout the year. Ultimately, the decision is yours, pending HMRC developing alternative calculation methods.<\/p>\n\n\n\n<h2 id=\"h-do-you-need-to-register-for-payroll-bik\" class=\"wp-block-heading\">Do you need to register for payroll BiK?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s some good news: for benefits that fall within mandatory payrolling, you won\u2019t need to register with HMRC at all. From April 2027, payrolling simply becomes the default\u2014there\u2019s no sign-up step to remember.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is a change from the old voluntary system, where you had to register before the start of the tax year. That voluntary registration route closed for 2026\/27 on 5 April 2026, and HMRC is no longer accepting new voluntary registrations for that year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s one exception to keep on your radar. If you want to voluntarily payroll loans or accommodation (the two benefits outside the mandatory regime), you\u2019ll still need to register to do so. HMRC expects to open that registration service in November 2026, with a deadline of 5 April 2027. If that applies to you, it\u2019s worth diarising now.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You also don\u2019t need to worry about double taxation during the switch. HMRC has confirmed it will remove payrolled benefits from employees\u2019 tax codes before 6 April 2027, so they\u2019re not taxed twice. Any underpayments from previous years will still be collected through the tax code, as happens today.<\/p>\n\n\n\n<h2 id=\"h-why-do-businesses-offer-benefits-in-kind\" class=\"wp-block-heading\">Why do businesses offer benefits in kind?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Benefits in kind are more than just perks. They\u2019re a strategic way to attract and retain top talent in today\u2019s competitive job market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Perks such as flexible working tools, wellness allowances, and electric vehicle (EV) schemes show that your business cares about more than just productivity. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For growing businesses, offering thoughtful benefits can help your organisation stand out without requiring large salary increases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When structured well, they show that your business values wellbeing, convenience, and long-term growth\u2014making benefits a powerful part of your employer brand. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re thinking about your broader people strategy, it\u2019s worth considering how benefits fit into the overall employee experience you want to create.<\/p>\n\n\n\n<h2 id=\"h-how-to-payroll-benefits-in-kind\" class=\"wp-block-heading\">How to payroll benefits in kind<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Once the rules apply to you, payrolling becomes part of your regular payroll cycle. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s what\u2019s involved:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Work out the annual taxable value of each benefit, divide it across the&nbsp;remaining&nbsp;pay periods in the year, and include that amount in each employee\u2019s taxable pay.<\/li>\n\n\n\n<li>Report the Income Tax and Class 1A National Insurance through your Full Payment Submission (FPS) each pay period\u2014the same submission you already use for salaries.<\/li>\n\n\n\n<li>Keep clear records of all benefits provided, and adjust the figures if a benefit changes during the year.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you don\u2019t know the exact value of a benefit in-year\u2014for example, where it\u2019s provided by a third party\u2014HMRC will let you payroll a reasonable estimate and then correct it after year-end. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s a correction window up to 22 July following the end of the tax year to true up any estimates.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For benefits you\u2019re payrolling under the mandatory rules, you won\u2019t need to submit a P11D or pay Class 1A separately at year-end. It\u2019s all handled in real time. You\u2019ll only still use the P11D(b) process for benefits that remain outside payrolling, such as loans and accommodation you haven\u2019t chosen to payroll.<\/p>\n\n\n\n<h2 id=\"h-tips-for-setup-and-employee-communication-of-payrolling-benefits-in-kind\" class=\"wp-block-heading\">Tips for setup and employee communication of payrolling benefits in kind<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A smooth rollout depends on good internal communication and clear systems. Here are a few helpful steps:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Host a brief team session or record a short explainer video.<\/li>\n\n\n\n<li>Follow up with an email that includes key dates, links, and FAQs.<\/li>\n\n\n\n<li>Update payslip formats so benefit deductions are easy to understand.<\/li>\n\n\n\n<li>Appoint someone in HR or payroll as the go-to for questions.<\/li>\n\n\n\n<li>Test your payroll setup well ahead of time to avoid any surprises.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s also worth reassuring employees that HMRC will adjust their tax codes ahead of the change, so they shouldn\u2019t see the same benefit taxed twice. A little clarity here goes a long way. It\u2019s a chance to build trust while handling an important change well.<\/p>\n\n\n\n<h2 id=\"h-how-payroll-software-can-help-with-payrolling-benefits-in-kind\" class=\"wp-block-heading\">How payroll software can help with payrolling benefits in kind<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Good payroll software will make the entire process far easier. It can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Calculate the tax due on each benefit.<\/li>\n\n\n\n<li>Submit data directly to HMRC through your FPS.<\/li>\n\n\n\n<li>Maintain records for audits or employee questions.<\/li>\n\n\n\n<li>Make sure Class 1A National Insurance is calculated correctly in real time.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC is finalising the technical specifications for software developers during the second half of 2026, so it\u2019s worth checking in with your provider about when their update will land and what you\u2019ll need to do. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For more practical tips, check out our guide on\u00a0<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/payroll-automation-how-it-works-and-how-it-can-benefit-your-business\/\">how payroll <\/a><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-hr-automation\/\" target=\"_blank\" rel=\"noreferrer noopener\">automation<\/a><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/payroll-automation-how-it-works-and-how-it-can-benefit-your-business\/\"> works<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can also explore how Sage\u2019s&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/human-resources\/\">HR solutions<\/a>&nbsp;support compliance and simplify tax reporting.<\/p>\n\n\n\n<h2 id=\"h-common-mistakes-to-avoid-when-payrolling-benefits\" class=\"wp-block-heading\">Common mistakes to avoid when payrolling benefits<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Getting ready for payrolling is fairly straightforward, but there are a few easy missteps that can cause issues if you\u2019re not prepared:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Assuming the P11D disappears completely in 2027: <\/strong>It doesn\u2019t. You\u2019ll still file P11Ds for earlier years and for benefits not yet in scope, so don\u2019t switch off your year-end process too soon.<\/li>\n\n\n\n<li><strong>Overlooking the cash flow impact: <\/strong>In 2027\/28 you could be paying Class 1A National Insurance for both 2026\/27 and 2027\/28 in the same year. Model this early so it doesn\u2019t catch your finance team out.<\/li>\n\n\n\n<li><strong>Assuming your software handles it all automatically: <\/strong>Not every payroll system is configured for real-time benefit reporting yet. Check with your provider that your setup, benefit values and tax codes are correct.<\/li>\n\n\n\n<li><strong>Not communicating clearly with employees: <\/strong>If your team sees new deductions on their payslip without warning, it can cause confusion. A clear explanation ahead of time helps everyone feel informed and reassured.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Avoiding these issues will help ensure compliance, reduce employee questions, and set the stage for a smooth transition.<\/p>\n\n\n\n<h2 id=\"h-planning-ahead-what-to-do-now-for-payrolling-benefits-in-kind\" class=\"wp-block-heading\">Planning ahead: What to do now for payrolling benefits in kind<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">With Phase 1 arriving in April 2027, now is the perfect time to review your benefits strategy. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Start by listing every benefit your employees currently receive, then identify which fall into Phase 1 (April 2027), which follow in Phase 2 (April 2028), and which sit outside mandatory payrolling.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From there:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Speak to your payroll provider about when their software will be ready and what setup or training you\u2019ll need.<\/li>\n\n\n\n<li>Model the financial impact, including the potential of paying Class 1A National Insurance for two tax years in the same year.<\/li>\n\n\n\n<li>If you want to voluntarily payroll loans or accommodation, note the registration window opening in November 2026, with a 5 April 2027 deadline.<\/li>\n\n\n\n<li>Build an internal timeline that includes testing before the 2027\/28 tax year begins.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s also worth involving your finance and HR teams early. Payrolling benefits affects both tax reporting and employee engagement, so cross-functional planning helps catch issues before they become problems.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Final thoughts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Payrolling benefits in kind is becoming a legal requirement, starting with Phase 1 in April 2027 and widening in April 2028. The sooner you prepare, the easier the transition will be.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By getting familiar with the phased timeline, understanding which benefits apply when, and making sure your employees know what to expect, you\u2019ll reduce stress for everyone. And with the right software and systems in place, payrolling can become one of the simplest parts of your year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s a little breathing room built in, too: HMRC has said it will take a light-touch approach to penalties in the first year (2027\/28), with the full penalty regime applying from 2028\/29\u2014provided errors aren\u2019t deliberate. That\u2019s not a reason to wait, but it does give you room to get things right. Start now by reviewing your benefits, aligning with your payroll provider, and keeping your team in the loop. Take it one step at a time, test your systems early, and you\u2019ll be in a strong position well before the rules take hold.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>This  blog was first published in June 2025 and has been updated since with new information and for relevance. <\/em><\/p>\n\n\n\n<h2 id=\"h-frequently-asked-questions\" class=\"wp-block-heading\">Frequently asked questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1782384992192\"><strong class=\"schema-faq-question\">When does payrolling benefits in kind become mandatory?<\/strong> <p class=\"schema-faq-answer\">Payrolling becomes mandatory in two phases. From 6 April 2027, it applies to company cars, car fuel, vans, van fuel and employer-provided medical benefits. Most other benefits follow from 6 April 2028, while loans and accommodation stay outside the mandatory rules for now.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1782385014438\"><strong class=\"schema-faq-question\">Do I need to register with HMRC to payroll benefits in kind?<\/strong> <p class=\"schema-faq-answer\">No. For benefits within the mandatory regime, payrolling happens automatically from April 2027 and there\u2019s no registration step to complete. You only need to register if you want to voluntarily payroll loans or accommodation\u2014HMRC expects to open that service in November 2026, with a 5 April 2027 deadline.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1782385029088\"><strong class=\"schema-faq-question\">Do I still need to submit a P11D for employees?<\/strong> <p class=\"schema-faq-answer\">Yes, for now. You\u2019ll still file P11D and P11D(b) forms for 2025\/26 and 2026\/27, and for any benefits not yet in scope during 2027\/28. After that, P11Ds will mainly be needed only for loans and accommodation that you haven\u2019t chosen to voluntarily payroll.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1782385046754\"><strong class=\"schema-faq-question\">Which benefits must be payrolled from April 2027?<\/strong> <p class=\"schema-faq-answer\">Phase 1 covers company cars, car fuel, vans, van fuel and employer-provided medical (and dental) benefits. For these, Income Tax and Class 1A National Insurance must be reported and paid in real time through your payroll. Other benefits aren\u2019t required until Phase 2 in April 2028.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1782385057674\"><strong class=\"schema-faq-question\">Will employees pay tax twice when payrolling starts?<\/strong> <p class=\"schema-faq-answer\">No. HMRC has confirmed it will remove payrolled benefits from employees\u2019 tax codes before 6 April 2027, so the same benefit isn\u2019t taxed through both the payroll and the tax code. Any underpayments from earlier years will still be collected through the tax code as usual.<\/p> <\/div> <\/div>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Infographic: AI in HR and Payroll<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Planning how to use AI in HR and payroll? This infographic highlights the key opportunities, risks, and practical considerations to help you adopt AI with confidence.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-c625a21f-0d15-4eff-b1ee-4b9357c883b6\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download the AI in HR and Payroll infographic<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/Ai-in-HR-infographic-image-1440x810.jpg\" class=\"single-cta__image\" alt=\"A woman poses in front of the Sage glow line and a black background.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/Ai-in-HR-infographic-image-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/accountant-payroll\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAccountant payroll\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/hr-payroll-benefits\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tHR, payroll and benefits\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li 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managers under pressure and what can HR do about it?\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tDiscover why managers are feeling more pressure than ever and explore practical HR strategies to reduce stress, prevent burnout, and improve support.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-32157 post type-post status-publish format-standard has-post-thumbnail hentry category-people-leadership category-trends-insights tag-employee-benefits tag-employee-engagement tag-employee-retention tag-recruit tag-hr-processes-medium-businesses tag-hr-process tag-hr-payroll-benefits tag-looking-after-your-employees business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-employee-experience\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/09\/HPF_Static_Danielle_Option1-Final-684x384.jpeg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/09\/HPF_Static_Danielle_Option1-Final-684x384.jpeg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/09\/HPF_Static_Danielle_Option1-Final-768x384.jpeg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/09\/HPF_Static_Danielle_Option1-Final-1440x720.jpeg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-04T12:45:26+01:00\">4 September, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is employee experience and why is HR struggling to deliver it?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 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768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/08\/funeral-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__play-video\">\n\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" class=\"card-post__play-icon svg-icon\" width=\"28\" height=\"28\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 33 36\"><path d=\"M3.947.936C1.889 1.016 0 2.661 0 4.878v27.11c0 2.956 3.36 4.896 5.999 3.463l24.965-13.555c2.715-1.474 2.715-5.451 0-6.925L6 1.416a3.96 3.96 0 0 0-2.052-.48Zm.032 2.6c.232-.001.475.058.713.187L29.66 17.28c.986.535.986 1.774 0 2.309L4.692 33.144c-.952.517-1.999-.088-1.999-1.155V4.878c0-.533.261-.95.642-1.17.19-.11.411-.171.644-.172\" \/><\/svg>\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" width=\"24\" height=\"24\" class=\"card-post__meta-icon svg-icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 24 24\"><path d=\"M5.25 3C3.74 3 2.5 4.24 2.5 5.75v12.5C2.5 19.76 3.74 21 5.25 21h14c1.51 0 2.75-1.24 2.75-2.75V5.75C22 4.24 20.76 3 19.25 3zm0 1.5h14c.699 0 1.25.551 1.25 1.25v12.5a1.24 1.24 0 0 1-1.25 1.25h-14A1.24 1.24 0 0 1 4 18.25V5.75c0-.699.551-1.25 1.25-1.25m.25.75a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-8.25 2.751A1.248 1.248 0 0 0 9 9.251v5.5c0 .442.231.849.613 1.074.389.231.846.237 1.239.021l5.001-2.751c.396-.219.646-.639.646-1.094s-.25-.876-.646-1.095l-.001-.001-5.002-2.751a1.25 1.25 0 0 0-.601-.153zM5.5 8.25a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-8 1.423L14.731 12 10.5 14.328zm-5 1.577a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-13 3a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-13 3a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5z\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-19T09:00:00+01:00\">19 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">4 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow R Banks and Son Funerals Ltd supports its community\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-30438 post type-post status-publish format-standard has-post-thumbnail hentry category-technology-innovation tag-accountant-payroll tag-ai tag-hr-payroll-benefits tag-payroll business_type-small-business business_type-medium-sized-business business_type-accountants industry-hr-and-people-management\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/ai-and-payroll-getting-started\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media card-post__media--video\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_1843607799-684x384.jpg\" class=\"card-post__image\" alt=\"A woman at a desk calculating payroll on a screen using AI\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_1843607799-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_1843607799-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_1843607799-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__play-video\">\n\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" class=\"card-post__play-icon svg-icon\" width=\"28\" height=\"28\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 33 36\"><path d=\"M3.947.936C1.889 1.016 0 2.661 0 4.878v27.11c0 2.956 3.36 4.896 5.999 3.463l24.965-13.555c2.715-1.474 2.715-5.451 0-6.925L6 1.416a3.96 3.96 0 0 0-2.052-.48Zm.032 2.6c.232-.001.475.058.713.187L29.66 17.28c.986.535.986 1.774 0 2.309L4.692 33.144c-.952.517-1.999-.088-1.999-1.155V4.878c0-.533.261-.95.642-1.17.19-.11.411-.171.644-.172\" \/><\/svg>\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" width=\"24\" height=\"24\" class=\"card-post__meta-icon svg-icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 24 24\"><path d=\"M5.25 3C3.74 3 2.5 4.24 2.5 5.75v12.5C2.5 19.76 3.74 21 5.25 21h14c1.51 0 2.75-1.24 2.75-2.75V5.75C22 4.24 20.76 3 19.25 3zm0 1.5h14c.699 0 1.25.551 1.25 1.25v12.5a1.24 1.24 0 0 1-1.25 1.25h-14A1.24 1.24 0 0 1 4 18.25V5.75c0-.699.551-1.25 1.25-1.25m.25.75a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-8.25 2.751A1.248 1.248 0 0 0 9 9.251v5.5c0 .442.231.849.613 1.074.389.231.846.237 1.239.021l5.001-2.751c.396-.219.646-.639.646-1.094s-.25-.876-.646-1.095l-.001-.001-5.002-2.751a1.25 1.25 0 0 0-.601-.153zM5.5 8.25a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-8 1.423L14.731 12 10.5 14.328zm-5 1.577a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-13 3a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-13 3a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5z\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-11T09:24:08+01:00\">11 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tCurious about AI revolutionising payroll? Here\u2019s what you can do today\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-17260 post type-post status-publish format-standard has-post-thumbnail hentry category-people-leadership tag-hr-process tag-hr-payroll-benefits business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/contract-of-employment\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-740534235-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-740534235-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-740534235-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-740534235-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-05T11:14:25+01:00\">5 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is a contract of employment?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn what payrolling benefits in kind means, how it works, and how to stay compliant with all the new BiK changes with simple, actionable steps for your HR team.<\/p>\n","protected":false},"author":281,"featured_media":11424,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"","_yoast_wpseo_keywordsynonyms":"","_yoast_wpseo_primary_category":"9","sage_membership_post_content_type":"article","sage_membership_post_featured_video_id":"","sage_membership_post_video_type":"trailer","sage_membership_post_featured_video_duration":"","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[9,114],"tags":[225,234,37],"business_type":[4,3,115],"lilypad":[],"context":[],"industry":[],"persona":[67,69,73,74],"imagine_tag":[214,289,92,96,200,103,109],"coauthors":[354],"class_list":["post-23063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy-legal-operations","category-trends-insights","tag-accountant-payroll","tag-hr-payroll-benefits","tag-payroll","business_type-small-business","business_type-medium-sized-business","business_type-accountants"],"sage_meta":{"region":"en-gb","author_name":"Ashley Thompson","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-961279906.jpg","imagine_tags":{"214":"Accountant payroll","289":"Accounting and Payroll","92":"HR and Payroll","96":"Medium businesses","200":"Payroll","103":"Payroll software","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice 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