GlobalData
2 min read
Accounting-tech firm Mazuma has issued a reminder to small business owners to start preparing for the upcoming transition to mandatory digital payrolling of Benefits in Kind (BiK), set to take effect in April 2027.
BiK, also known as fringe benefits, encompasses non-cash perks provided by employers to employees, such as company cars, gym memberships, or private health insurance, which are often taxable.
The traditional P11D form for BiK reporting will be replaced by a real-time digital system integrated into payroll processes.
HM Revenue and Customs (HMRC) aims to eliminate paper-based forms and end-of-year adjustments, requiring employers to report BiK details alongside regular payroll submissions.
Mazuma co-founder and CEO Lucy Cohen said: “Time flies when you are running a business. Whilst this new requirement seems far away, it will be here sooner than you think.
“As we have seen with several other landmark changes in recent years, it takes time to get the right policies, procedures and technology in place. 2027 – It’s sooner than you think.”
Drawing comparisons with past regulatory shifts like GDPR and Making Tax Digital, Cohen highlighted the importance of early preparation.
She said. “We get it. You didn’t start your business as the payroll admin. You started it to do what you’re brilliant at, whether that’s building websites, baking cakes or being your own boss.
“The clock’s ticking. These BiK changes are coming, and it’s easier to adapt now than to panic in 2026.”
Mazuma, a subscription-based accounting service, is encouraging businesses to streamline their payroll processes well in advance to ensure compliance with the new requirements.
"Mazuma urges UK employers to prepare for digital BiK reporting" was originally created and published by International Accounting Bulletin, a GlobalData owned brand.
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