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July 8, 2025
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Payroll
Tax advice
The mandatory rollout of payrolling benefits has been delayed until April 2027, giving HMRC time to address unresolved issues, which we've outlined in this article. Although as advisors we support a system that helps us be more efficient, at the moment, we need to address the potential problems related to benefit estimation, double taxation, and system readiness if HMRC goes ahead.
To payroll, or not to payroll. That decision was to be taken out of our hands, but it is now delayed until April 2027, for now - see MTD for income tax.
Practical issues which HMRC are aware of:
Time will tell if HMRC finds a way to penalise errors, or if further delays will come.
As advisers, we’re largely in favour of the change, but only if the system is fit for purpose. Monthly recurring work, with contemporaneous records, is always preferable to one off work looking backwards more than 12 months. Clients are also usually more accommodating of their invoices reflecting the work which is actually being done in the month.
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