Payroll Hub · Simple employer guide
How to get company-car records ready for April 2027
Find out what information to collect, where to find it and what to do when an employee changes car.
Best for: Business owners and people working in payroll, finance or HR
- Plain-English guide
- Reviewed 11 August 2026
In simple terms
Status: HMRC interim guidanceCompany cars are included in the first group of benefits moving into payroll from 6 April 2027. Start with a list of every employee and car, then check the car’s price, emissions, dates available and any money the employee pays towards it. Your fleet or lease records should provide much of this information.
What company-car information will employers need?
For each car, collect the registration, make and model, first registration date, emissions, fuel type, list price and relevant accessories. Also record when the car was available and any amount the employee paid towards the car or private use.
What happens when an employee changes car?
Record the date the old car stopped and the new car started. Keep both records so payroll can calculate each part of the year correctly; do not replace the old car as if it never existed.
Optional detail
Official guidance behind this answer
The short answers above are enough to get started. Open these sections only if you need to check the current HMRC position or source.
What Benefits in Kind must be payrolled from 6 April 2027?
Status: HMRC interim guidanceFrom 6 April 2027, HMRC says employers will need to put company cars, car fuel, vans, van fuel and employer-provided medical benefits through payroll.
Read the full answer and official source
These are the first five benefit groups in the change. HMRC currently plans to add most other Benefits in Kind from April 2028, while loans and accommodation will continue to have separate arrangements.
Source: HM Revenue and Customs — The phased introduction of mandatory payrolling for benefits in kind
Source updated: . Workmax reviewed: .
What information will employers report through FPS?
Status: Draft HMRC technical specificationHMRC has published a draft list of benefit information that payroll software may need to send. Employers can start gathering the information, but the final list may still change.
Read the full answer and official source
The draft includes benefit values, employer Class 1A amounts and extra details for particular benefits. Company cars need the most information, including vehicle and availability details.
Source updated: . Workmax reviewed: .
Plain-English Benefits in Kind glossary
- Benefit in Kind (BiK)
- A non-cash benefit or expense provided by an employer that may create an Income Tax liability.
- Payrolling benefits
- Including a benefit's taxable value in payroll so Income Tax is collected through PAYE.
- Cash equivalent
- The statutory taxable value of a benefit, which may differ from its purchase price or cash cost.
- Class 1A NIC
- An employer National Insurance liability charged on many taxable benefits and expenses.
- P11D
- The end-of-year form traditionally used to report taxable expenses and benefits for an employee.
- FPS
- The Full Payment Submission employers send through Real Time Information when payroll is reported to HMRC.
