{"id":5543,"date":"2024-01-25T09:53:48","date_gmt":"2024-01-25T09:53:48","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=5543"},"modified":"2024-01-25T12:45:53","modified_gmt":"2024-01-25T12:45:53","slug":"new-payrolling-of-benefits-in-kind-bik-system-a-guide-for-smes","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/new-payrolling-of-benefits-in-kind-bik-system-a-guide-for-smes\/","title":{"rendered":"New payrolling of Benefits-in-Kind (BIK) system: A guide for SMEs\u00a0"},"content":{"rendered":"

From April 2026, small and medium-sized businesses will be required to report and pay taxes on employee benefits like company cars and accommodation directly through their payroll software.<\/span><\/p>\n

This change eliminates the need for separate paperwork and simplifies the process.\u00a0<\/span>\u00a0<\/span><\/p>\n

Ultimately, the goal is to make managing employee benefits more efficient while reducing administrative hassles for SME owners.<\/span>\u00a0<\/span><\/p>\n

Benefits-in-Kind (BIK)<\/span><\/b> refers to the non-cash benefits provided to employees, such as company cars, accommodation, or beneficial loans.\u00a0<\/span>\u00a0<\/span><\/p>\n

Starting in 2026, you’ll need to report and pay Income Tax and Class 1A National Insurance Contributions (NICs) on these benefits via your payroll software.<\/span>\u00a0<\/span><\/p>\n

The good news is that this change is designed to simplify your administrative burden.\u00a0<\/span>\u00a0<\/span><\/p>\n

You can say goodbye to the separate P11D and P11D(b) forms.<\/span>\u00a0<\/span><\/p>\n

Everything will be integrated into your payroll system, reducing paperwork and making your financial management more efficient.<\/span>\u00a0<\/span><\/p>\n

Implications for SMEs<\/span><\/b>\u00a0<\/span><\/h4>\n

We\u2019ve been getting questions from clients asking if there are downsides to this change.\u00a0<\/span>\u00a0<\/span><\/p>\n

While there shouldn\u2019t be any direct financial implications, your payroll software will need looking into, which could turn out to be a costly expense.\u00a0<\/span>\u00a0<\/span><\/p>\n

If a specialist doesn\u2019t already handle your payroll, you\u2019ll need to ensure that your payroll software is up to date and compliant with the new requirements.\u00a0<\/span>\u00a0<\/span><\/p>\n

This might mean investing in new software or updating your existing one.\u00a0<\/span>\u00a0<\/span><\/p>\n

You\u2019ll have to be prepared for potential costs associated with software upgrades and training staff.\u00a0<\/span>\u00a0<\/span><\/p>\n

It might be cheaper and easier to just outsource this responsibility to a qualified and experienced accounting professional.<\/span>\u00a0<\/span><\/p>\n

By outsourcing, you are not only improving your business\u2019s payroll efficiency, but you are also opening yourself up to a wealth of advice and information on your specific business needs.<\/span>\u00a0<\/span><\/p>\n

Either way, you\u2019ll need to seriously think about your payroll management in the near future as 2026 is only just around the corner \u2013 not a very long time to train your staff and get up to speed with the latest requirements!<\/span>\u00a0<\/span><\/p>\n

Please speak to our team about outsourcing your payroll today.<\/span><\/b>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

From April 2026, small and medium-sized businesses will be required to report and pay taxes on employee benefits like company cars and accommodation directly through their payroll software.<\/p>\n","protected":false},"author":2,"featured_media":5545,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125,40,121,49],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5543"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=5543"}],"version-history":[{"count":2,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5543\/revisions"}],"predecessor-version":[{"id":5546,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5543\/revisions\/5546"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/5545"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=5543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=5543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=5543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}