Action required before April 2027
HMRC’s real-time BIK reporting is coming. Is your benefits data ready?
From April 2027, employers must report certain benefits-in-kind through payroll in real-time, every pay period. The move from annual P11D reporting to real-time submissions is a systems change, not just a process one. Ciphr benefits, connected to your existing HR system, automates the data flow.
What HMRC’s phased rollout means for you
HMRC has confirmed a phased approach to mandatory BIK payrolling, which is welcome news - but April 2027 remains a real deadline for many employers. Here’s what the phases mean in practice:
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Phase 1 (April 2027): company cars, car fuel, vans, van fuel and employer-provided medical benefits
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Phase 2 (April 2028): mandatory for most other benefits
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Loans & accommodation: remain voluntary for now
If your organisation provides any phase 1 benefits, you need to be ready to report them through payroll by April 2027. That means your benefits, HR and payroll data must be connected and flowing automatically. You’ll also need to decide if you’ll continue to report any other benefits via P11D or voluntary payrolling.
Annual P11D reporting is going away. Real-time payrolling is the new standard
For HR, benefits and payroll teams running separate systems, this is a significant operational shift. Manual data transfer, spreadsheet reconciliation and end-of-year P11D preparation won’t scale to real-time reporting requirements.
Without connected systems, employers face:
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Real-time RTI submissions that depend on manual data entry
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Payroll errors when benefit changes aren’t updated in time
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Parallel reporting obligations across phase 1 and phase 2 benefits during transition
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Increased administrative burden across HR, benefits and payroll teams
Sign by 30 September 2026. Early-bird offer
Existing Ciphr HR customers who sign up for Ciphr benefits before 30 September 2026 will receive:
- A free consultation
- Early-bird discount
- Guaranteed implementation before April 2027