Employer rates for 2026–27
| Class 1 secondary rate | 15% |
|---|---|
| Secondary threshold | £96 a week (£5,000 a year) |
| Employment Allowance | Up to £10,500 |
| Class 1A on benefits | 15% |
The reporting calendar
- Every payday: Full Payment Submission on or before the date employees are paid.
- By the 19th of the following tax month: Employer Payment Summary, where needed, and CIS monthly returns for construction contractors.
- 31 May: P60s to employees.
- 6 July: P11D and P11D(b) for benefits and expenses.
- 22 July: Class 1A National Insurance, if paying electronically.
Payrolling benefits in kind from April 2027
HMRC’s interim guidance sets out a planned two-phase introduction of compulsory payrolling for benefits in kind. Final guidance is still to follow:
- From 6 April 2027: company cars and car fuel, vans and van fuel, and medical benefits.
- From 6 April 2028: most other benefits. Beneficial loans and accommodation can remain voluntary.
This moves benefit reporting from an annual P11D exercise into every pay run. Payroll software, processes and employee communications need to be ready before the first affected pay day.
Getting ready
A PAYE health check is a good way to test an in-house payroll before the changes arrive, and remuneration planning can review which benefits still make sense.
Sources
- Rates and thresholds for employers 2026 to 2027
- Running payroll: reporting to HMRC
- Payroll: annual reporting and tasks
- Expenses and benefits for employers: deadlines
- The phased introduction of mandatory payrolling for benefits in kind
- CIS contractors: file your monthly returns
This article is general guidance and not advice for your circumstances.
