(Updated: September 2026)
Background
Partial Mandatory Payrolling of Benefits in Kind (Cars, Vans, Car/Van Fuel and Medical Benefits) is due to come into effect from 6th April 2027, with remaining benefits, except loans and accommodation, to follow suit from April 2028. We are receiving a lot of enquiries as to how we can continue to support our customers with their Benefits' calculations and what enhancements we are making to the software. As we progress through our development and testing we will keep our customers updated but we have laid out below a selection of popular Q&As addressing the progress we have made and anticipated time lines. If you need any further information or have any questions please do reach out to the support team.
Q - Your current roadmap for supporting the April 2027 PBIK changes.
A - We are currently developing the software to accommodate the draft technical specification that HMRC released recently. These changes will work alongside the existing product and allow for the mandatory payrolled benefits (cars & car fuel, vans & van fuel and medical). We would anticipate early versions of the new software to become available in autumn this year, with an expectation of customer deliveries before March 2027.
Q - Any anticipated system enhancements or new functionality being developed.
A - The basic cash equivalent calculations are already in place and work, as they have not fundamentally changed from existing P11D reporting, what is being added is the ability to divide the annual premiums over the required number of pay periods, and the facility to export these, along with year to date figures, in a format 'digestible' by payroll systems. We will also be able to export the Class 1A and the YTD Class 1A for use in the RTI FPS.
Q - How the solution will support the identification, calculation, and reporting of benefits that will need to be processed through payroll.
A - The system already handles payrolled benefits (it has done for a number of years). The three mandated sections will clearly be defaulted to this option, and you will retain the ability to mark any sections that you voluntarily payroll in a similar fashion as you would today. Voluntarily payrolled items would appear in the export as an additional benefits number, as required by HMRC. As stated above, the method of calculation has not changed.
Q - Whether there are any planned changes to data outputs, integrations, or reporting capabilities.
A - Entry of data into the system will remain as it is today (import/manual), although we would assume customers will be updating and/or importing data on a much more regular basis, most likely in line with the pay period. In relation to output, we will be adding the 'payroll export' detailed above, and also adding a range of 'payrolled benefit statements' to allow you to communicate with employees (when things change or at the end of the year for example).
Q - Indicative timelines for development, testing, and customer availability.
A - Covered in the first answer to some extent - we are a little constrained by HMRC, who have still not finalised the RTI specification, but we expect initial versions of the software to be available in the autumn, with customers getting access early next year.
Q - Opportunities for customers to participate in previews, pilot programmes, or user feedback sessions.
A - We will be communicating with customers over the coming months about what we are doing and the planned timescales. We are keen to engage with customers to better understand their requirements, although we also appreciate that they will look to PAS for some guidance. We will be looking for some customers with whom we can work during development, as well as some that can test the software in a 'live' environment - if it is OK with you, we'll add your name to the list of people we can contact.
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