Payroll cars, vans and medical cover from April 2027 — or except mobile staff

Employers must report company cars and fuel, company vans and fuel, and medical insurance through payroll from 6 April 2027GOVGOVGOV, but they can apply for an exception keeping eligible globally mobile employees on year-end P11D and P11D(b) reportingGOV.

Globally mobile means working, or likely to work, both inside and outside the United Kingdom, working in the United Kingdom while receiving benefits or expenses from an employer outside the United Kingdom, or working outside the United Kingdom while receiving them from an employer inside it.GOV Eligibility turns on the working pattern: the employee is likely to receive benefits or expenses in at least two pay periods in the tax year and the employer will not have enough information to payroll them when received.GOV Short-term business travel or remote working outside the United Kingdom, occasional overseas meetings and other temporary travel do not usually qualify.

Starting an exception changes only how and when benefits are reported, not the Income Tax or National Insurance due or how it is calculated.GOV The exception covers all benefits in kind for that employeeGOV; payroll for some benefits and P11D for others is not permitted. PAYE operation, including EP Appendix arrangements, is unaffected and existing PAYE obligations continue.

Apply as soon as it becomes clear the employee is or is likely to become globally mobile. An exception cannot be backdatedGOV: keep payrolling until the start date given on the form. An application made mid-year after payrolling has started stops payrolling from the form's start date, and the exception then runs for the rest of that tax year and into following years unless an end date was given or the employer later reports the exception as ended. Apply to end it as soon as the employee will no longer be eligible; no ending application is needed where an end date was given at the outset and the employee stayed eligible throughout. An exception can end only on 5 AprilGOVGOV. Report that year's benefits on P11D and P11D(b), and payroll any benefits provided from 6 April of the following year.

The form asks for the business name and address and PAYE reference, and for each employee the full name, National Insurance number or date of birth, payroll or works number where available, a start date on or after submission, and an end date where known. Without an end date the exception stays in place until a further form ends it. Employer and employee details must match HMRC records with an active employment record, and an ending request needs an existing exception; errors delay or block processing. Sign in to apply, save and return as needed but submit within 28 days, and include any number of employees individually or by spreadsheet template.

After submission HMRC emails an application reference. Treat listed employees as exceptions from the form's start date without payrolling their benefits and expenses; HMRC contacts the employer only where it cannot process an entry, and a multi-employee form can succeed for some employees and fail for others. A submitted form cannot be edited: correct or update details with a new form. Keep the employees listed, the information submitted, the submission date, the reference, and any HMRC correspondence, to show who is excepted and to answer processing queries.

Legal basis: mandatory payrolling of benefits in kind from 6 April 2027; P11D and P11D(b) year-end reporting for excepted globally mobile employees.