Change of https://www.gov.uk/guidance/paying-your-employees-expenses-and-benefits-through-your-payroll

Change description : 2026-04-06 00:15:00: Added information about changes to the rules on reporting benefits and expenses. Removed information about registering and cancelling registrations for the service, as you cannot do this any more. [Guidance and regulation]

Showing diff : 2025-08-07 22:55:34.765669621 +00:00..2026-04-05 23:34:08.130414474 +00:00

Guidance

How to use the payrolling benefits and expenses online service

Use the payrolling benefits and expenses online service toif showyou you’recollect collecting tax on benefits and expenses through your payroll.

From:
HM Revenue & Customs
Published
12 June 2014
Last updated
296 JulyApril 20252026 — See all updates

Online service

AsThe anrules employer,on ifreporting youbenefits chooseand toexpenses taxare employees’changing.

You cannot change the way you report benefits and expenses throughfor yourthe payrollcurrent youtax year.

You can tellno HMRClonger online.use this service to:

If

  • register youto arepayroll anbenefits agent,and youexpenses
  • cancel your registration to payroll benefits and expenses

Online service

You can only use the PAYEonline forservice agentsif onlineyou serviceregistered to payroll benefits inand kindexpenses online.before 6 April 2026.

YouIn needthe toservice registeryou onlinecan:

  • view beforebenefits theregistered startto ofpayroll for the current tax year
  • view youemployees wantwho tohave payrollbeen for.

    excluded from a payrolled benefit
  • exclude employees from a payrolled benefit for the current tax year

EmployersIf canyou’re registeran andemployer, use the payrolling benefits and expenses online service.

AgentsIf canyou’re an agent, sign in orto setyour up an HMRC online services account to— useyou can access the payrolling benefits inonline kindservice through the PAYE for agents online service.

Check if there are any problems with the payrolling benefits and expenses service.

How payrolling works

You can only payroll benefits that you registered to payroll before 6 April 2026.

For benefits you’re registered to payroll, you must add the cash equivalent of the employees’ benefits to their pay and then tax them through your payroll.

HMRC will make sure the value of the benefit is not included in your employees’ tax codes.

If you usepayroll thea servicebenefit, you:

  • willdo not need to use form P11D for the benefit
  • must still work out the Class 1A National Insurance contributions on benefits and complete form P11D(b)

You can exclude employees from payrollinga oncepayrolled you’rebenefit, registered, but you’ll need to use form P11D to declare the non-payrolled benefits.

Once theyou’ve taxexcluded yearan hasemployee, started you’ll have to payroll the benefits for the whole of the tax year, or until you stopcannot providingadd them.

Beforethem youback start

Contact your accounting software provider to makea sure your software can collect the correct tax due on the registered benefits directly from your employees’ pay.benefit.

If you use Basic PAYE Tools you can use this service. You stillcannot need to register by 5 April.payroll:

To

  • living useaccommodation thisprovided serviceby you needas aan Governmentemployer
  • interest Gatewayfree user ID and passwordlow tointerest enrol(beneficial) for PAYE online.

    loans

ServiceIf availability

HMRCyou servicesprovide maybenefits bethat slowhave duringnot busybeen times.

Check if there are any problems with this service.

Submitting electronic P11Dspayrolled

You will need to submit electronic P11Ds for any employees where you have provided additional benefits which have not been payrolled.

You can payroll all benefits apart from:

  • living accommodation provided by you as an employer
  • interest free and low interest (beneficial) loans

Updates to this page

Published 12 June 2014
Last updated 296 JulyApril 20252026 + show all updates

  2. Added translation

Sign up for emails or print this page

Contents

Update history

2026-04-06 00:15
Added information about changes to the rules on reporting benefits and expenses. Removed information about registering and cancelling registrations for the service, as you cannot do this any more.

2025-07-29 17:05
Added translation

2024-05-10 14:55
A link for agents to use the Payrolling Benefits in Kind online service has been added.

2023-11-24 13:08
The link to the form ‘PAYE – notification of payrolled benefits’ to tell us about payrolled benefits paid to your employees has been removed. You must register and use the online service.

2023-05-10 15:01
The section on Submitting electronic P11Ds has been changed because employers no longer need to use the service to send P11D’s in for payrolled employees from April 2023.

2023-04-06 00:15
From 6 April 2023, HMRC will no longer HMRC will no longer accept informal payrolling of expenses and benefits, or paper P11D forms.