Hi Mary,

Thanks for your post.

Employers Class 1A NIC is not processed through payroll under the current voluntary payrolling of Benefit In Kind (BIK) arrangements (with the exception of Termination payments subject to Class 1A NIC).

You would need to report and pay Class 1A NICs on payrolled BIKs on a P11D(b) at the end of the tax year. This is done via the HMRC's online portal or via P11D software.

This is due to change when payrolling BIKs becomes mandatory from April 2027, where Class 1A will be reported and paid in real time through payroll. How this will work is still to be confirmed by HMRC.

If this helps, please let me know by clicking Verify Answer.

Andy,
Sage UKI

Hi Mary,

Thanks for your post.

Employers Class 1A NIC is not processed through payroll under the current voluntary payrolling of Benefit In Kind (BIK) arrangements (with the exception of Termination payments subject to Class 1A NIC).

You would need to report and pay Class 1A NICs on payrolled BIKs on a P11D(b) at the end of the tax year. This is done via the HMRC's online portal or via P11D software.

This is due to change when payrolling BIKs becomes mandatory from April 2027, where Class 1A will be reported and paid in real time through payroll. How this will work is still to be confirmed by HMRC.

If this helps, please let me know by clicking Verify Answer.

Andy,
Sage UKI