UK Employers Must Run Company Car and Van Benefits Through Payroll From April 2027

From 6 April 2027, UK employers will have to report most benefits in kind, including company cars, vans, fuel and private medical cover, through payroll. Tax and employer National Insurance on these benefits will be collected from each month's pay instead of through the annual P11D process. Employment-related loans and living accommodation are initially excluded from the change. The shift means fleet and HR records must be accurate every month, not just once a year. One company has begun linking fleet and HR data by employee number and running parallel calculations to catch errors before the deadline.