Payrolling Benefits
Managing employee benefits through payroll can make it easier to keep track of taxable benefits, calculate the correct deductions and meet HMRC reporting requirements.
At Elite Payroll Services, we help businesses manage payrolling benefits accurately and efficiently. With over 25 years of payroll experience, our dedicated team can support your employee benefits payroll processes, from calculating taxable benefit values to ongoing reporting and compliance.
Whether you’re already payrolling benefits or preparing for upcoming changes to HMRC requirements, we’re here to help simplify the process.
Why choose Elite Payroll Services?
- Over 25 years of payroll experience
- Dedicated payroll specialists
- UK-wide support
- Tailored payroll reporting
- HMRC compliance expertise
- Friendly, personal service
How Elite Payroll Services Can Support Your Business With Payroll and Benefits
Managing employee benefits alongside your regular payroll can be time-consuming, particularly when you need to account for different types of taxable benefits and changing HMRC requirements.
Our payroll specialists take care of the practical details, helping your business manage employee benefits through payroll while keeping records accurate and employees informed.
1. Registration with HMRC
- Guidance on HMRC requirements for payrolling benefits, including upcoming changes to mandatory reporting.
- Support with identifying which employee benefits need to be included in payroll and which require separate reporting.
- Accurate calculation of taxable benefit values to help ensure the correct amount of tax is deducted.
- Assistance with preparing your payroll processes for changes to benefits in kind reporting.
2. Payrolled Benefits Integration
- Seamless integration of benefit values into monthly payroll processing, ensuring that the tax on benefits is deducted each pay period correctly.
- Customisation of payslips to clearly show the taxable benefits and associated tax deductions, enhancing transparency for your employees. Our Payslip Services ensure that reliable, accurate and secure payslips are delivered to your employees.
3. Annual Reporting, Compliance & Penalty Avoidance
- Preparation and submission of year-end reports to HMRC, ensuring that all payrolled benefits are accurately reported.
- Proactive management to ensure that all payrolled benefits are correctly handled, helping you avoid penalties from HMRC.
- Regular updates and reminders to keep you informed of any changes in legislation that may affect your payroll of benefits.
- For more compliance support, see our Compliance Management Services.
4. Employee Communication
- Clear communication to employees about how payroll benefits work, what it means for their pay, and how it affects their taxes.
- Customised employee communications that align with your company’s branding and provide easy-to-understand information.
5. Ongoing Benefits Support & Adjustments
- Ongoing support to manage any changes in employee benefits, ensuring that your payroll remains accurate and compliant throughout the year.
- Our experts are on hand to manage all mid-year changes, such as new joiners or leavers, ensuring that benefits are correctly taxed from day one. We offer a Company-Specific Report Service that ensures we provide tailored support for you.
Changes to Payrolling Benefits From April 2027
HMRC is introducing changes to how employers report and pay tax on benefits in kind, with mandatory payrolling being introduced in stages. From 6 April 2027, employers will generally be required to report certain taxable benefits through payroll software, including:
- Company cars
- Company car fuel
- Company vans and van fuel
- Employer-provided medical benefits
From April 2028, mandatory payrolling is expected to extend to most other benefits in kind, with separate arrangements for employer-provided loans and accommodation. These changes mean businesses will need to ensure their payroll systems can accurately calculate, process and report taxable benefits in real time.
Payrolling of Benefits FAQ:
What is payrolling benefits?
Payrolling benefits is an HMRC-approved method that allows employers to tax employee benefits through the payroll instead of reporting them separately via P11D forms. By including the taxable value of benefits directly in employees’ pay each month, you simplify the tax process for both your business and your employees. This approach ensures that taxes on benefits are paid in real-time, reducing the administrative burden at the end of the tax year.
Payroll benefits can also improve transparency for employees, as they can see the tax impact of their benefits on their payslips throughout the year.
What are the benefits to employers when payrolling benefits?
There are many reasons why payrolling benefits can help your business run smoother day to day, including:
- Reduced administrative tasks: Payrolling benefits reduce the need to submit individual P11D forms for each of your employees. With this task eliminated, your overall payroll is streamlined.
- Tax Accuracy: Tax is deducted monthly when added to payroll, providing you with more clarity and real-time reporting.
- Transparency: With benefits displayed monthly in employee payslips, your employees have full transparency over their benefits, reducing anxiety and queries.
What are payrolling and benefits services?
Payrolling and benefits services help businesses manage employee pay alongside taxable benefits provided to their workforce.At Elite Payroll Services, we support employers with payroll processing, benefits administration, taxable benefits calculations, HMRC reporting and ongoing compliance. Our experienced team can help businesses manage their employee benefits payroll requirements accurately, reducing the administrative burden on internal teams.
What employee benefits can be included in payroll?
Depending on the applicable HMRC rules, taxable employee benefits that may be processed through payroll include:
- Company cars and fuel
- Private medical insurance
- Taxable gym memberships
- Health cash plans
- Certain employer-paid subscriptions
- Other qualifying taxable benefits in kind
Not all benefits are treated in the same way, and some may be exempt from tax or subject to different reporting requirements.
Employer-provided living accommodation and beneficial loans cannot currently be payrolled under the existing voluntary scheme, although the rules are changing from April 2027.
Our Services
Auto Enrolment
Securing your future through workplace pensions.
CIS Monthly Returns
Comprehensive reports to keep your business organised.
Company specific reports
We use top-tier payroll software to provide your business with custom reports.
Compliance Management
Ensure compliance with all payroll-related laws and regulations.
Payrolling Benefits
Payrolling benefits streamline payroll processing, ensuring compliance and accuracy
Payslips
We are able to provide you with accurate and secure payslips.