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Simplifying the reporting of Income Tax and National Insurance contributions on benefits in kind

This means that the 2025 to 2026 tax year will be the last year that employers will be able to file P11Ds and P11D(b)s with HMRC in most cases. From this date, tax on employment benefits will be collected in real time and not through tax codes in arrears. Class 1A National Insurance contributions will also be collected in real time for each pay period rather than at the end of the year.

HMRC will engage with stakeholders to discuss their proposals to inform design and delivery decisions, and draft legislation will be published later in the year as part of the usual tax legislation process. HMRC will also work with industry experts to produce guidance, which will be made available in advance of 6 April 2026.

The plans are currently in development and HMRC will welcome stakeholder views on delivery proposals ahead of their implementation. General feedback and suggestions relating to the proposals can be submitted to policyemploymentbenefitsexpenses@hmrc.gov.uk

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