The House of Lords will examine mandatory reporting of benefits in kind—including company cars, vans and fuel—before the rules change in April 2027.
The aim is to replace end-of-year reporting with real-time payroll reporting.
The Finance Bill Sub-Committee’s inquiry into the draft Finance Bill 2026-27 will cover benefits reporting through Real Time Information (RTI), modernised error corrections and customs reforms for low-value imports.
HMRC’s policy paper, published Monday, July 13, says most employers providing cars, vans, fuel or medical benefits will replace year-end P11D reporting with real-time calculation of income tax and Class 1A National Insurance contributions through payroll software using RTI.
From April 2028, this will extend to most other benefits, except employer-provided loans and accommodation.
The inquiry is seeking evidence on:
- How easy RTI reporting will be and whether employers of all sizes are ready.
- What HMRC support employers need before implementation.
- The administrative impact, including on employers still using P11Ds for some benefits.
- Views on the revised timetable and whether the April 2027 and April 2028 start dates are achievable.
- Whether HMRC’s estimates of business compliance costs are realistic.
The submission deadline for written evidence to the committee is 5pm on Sunday, October 11, 2026.
https://committees.parliament.uk/submission/3990/#/evidence/3990/call-for-evidence