How to modernise benefits & payroll for real-time reporting
From April 2027, UK employers will no longer be able to report Benefits in Kind via P11Ds. Instead, benefits like health insurance and company cars will need to be taxed monthly through payroll. That means up to 12× more admin if your systems aren’t connected, and tighter deadlines for HR, payroll, and finance teams to stay compliant. Chris Priebe (CEO, Zelt) is joined by Mike Hesch (Head of UK Employee Benefits, Hooray Insurance) and Sam Wilkinson (CEO, RORA) to help you get ahead of the change.
We’ll cover:
Chris Priebe
CEO @ Zelt
Chris Priebe is the co-founder of Zelt, a modern HRIS that simplifies people operations by unifying HR, payroll, and IT in one system. With a background in venture capital, he’s been an investor at companies like Deel, Personio and Revolut.
Mike Hesch
UK Lead @ Hooray
Mike Hesch is Head of UK Employee Benefits at Hooray, and brings 20+ years of experience in workplace benefits, wellness, pensions, and insurance. He’s held senior roles at Mercer, Capita, and Aon, and now helps fast-growing companies design benefits strategies that support both people and performance.
Sam Wilkinson
CEO @ RORA
Sam trained in accountancy and audit with PwC but left to work with much more entrepreneurial businesses. He co-founded RORA to deliver fractional finance support for scaling businesses. He brings a wealth of experience working with fast growing businesses to build, modernise and automate their finance functions.
Frequently asked questions
What are payrolled benefits?
Payrolled benefits are a way for UK employers to handle the tax on employee benefits, like private medical insurance or a company car, by processing it through the regular payroll system. Instead of reporting the benefits on a separate P11D form at the end of the tax year, the taxable value of the benefit is added to the employee's pay for each pay period. The income tax due is then deducted in real-time, which helps to smooth the tax impact for the employee. While it's currently a voluntary choice for employers, it will become a mandatory requirement.
How is benefits reporting changing?
The system for reporting employee benefits in the UK is undergoing a major change. From April 2027, it will become mandatory for employers to payroll most benefits in kind. This means that instead of using the traditional P11D forms at the end of the tax year, employers will be required to report and deduct the tax on these benefits in real-time through their payroll software. This shift aims to simplify the tax system and reduce administrative burdens. However, some benefits, like employer-provided living accommodation and beneficial loans, may still be reported on P11D forms, with a separate timeline for mandatory payrolling to be published in due course.
How can I integrate benefits and payroll?
Integrating benefits and payroll typically involves using software and digital tools to automate the exchange of data between your HR and payroll systems. This process, often referred to as payroll integration, helps to save time and money by automating manual data entry, which reduces human error and the need for costly rework. It also improves accuracy by creating a single source of truth for employee data, ensuring consistency and accuracy across different systems. Finally, having a centralized, up-to-date database allows for better reporting and analytics on employee benefits, compensation, and satisfaction, which can enhance decision-making. When looking for a solution, consider a system that is compatible with your existing tools, is user-friendly, and offers the security and support needed to handle sensitive employee data.