That change raises three key considerations for businesses, especially in the property sector and professional services:
- System readiness – Your payroll software must be capable of submitting the required data in real time through the Full Payment Submission (FPS).
- Data collection & timing – You’ll need to track taxable benefits throughout the year (for example vehicle perks, private health insurance, wellness subscriptions) and apply the correct value each pay period.
- Internal communication – Employees will see more of their non-salary benefits reflected in their payslips. Clear explanations about how this impacts tax (and payslip appearance) will help retain trust and avoid surprise. Use your HR adviser, a simple slip of the tongue, or adding complexity when simple clarity is needed, can reverse the goodwill you are trying to share.
The VFO Team’s perspective
In our work with property professionals, manufacturing businesses and small-to-mid sized service firms, we see this as a strategic moment:
- For firms already offering high-value perks (company cars, membership benefits, health plans) this is more than compliance – it’s about making sure the benefit packages remain efficient and aligned with business goals.
- For businesses still using older payroll/reporting methods, the compliance change is an opportunity to review your wider reward strategy (what benefits are really adding value vs cost).
- For your finance team, this means adding this to your planning, SoPs and KPIs now – not waiting until it’s too late.
Next Steps
- Audit your benefits: Produce a current list of all non-salary benefits provided, estimate their cash equivalent for the tax year.
- Assess systems: Check your payroll provider/software: can you submit BiKs via FPS, is your data capture process robust, can you adapt by April 2027?
- Communicate & integrate: Develop a staff-communication plan explaining how benefits will be taxed via payroll, how this may affect payslips, and what the business is doing to manage smoothly.
The Profit Builder’s Perspective
This isn’t just another tax update. For ambitious business owners it’s an inflection point – how you reward and structure your team reflects directly on your brand, your financial foundation and your profitability. Making the transition well positions you for clarity, stronger trust with your team, and smarter cost-control.
Ensure your payroll and reward systems aren’t just compliant – they actively support your business’s profitability, team engagement and long-term performance.