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Payroll Hub · Simple employer guide

What to do when benefit information is late or wrong

Correct a cost, date or vehicle change without deleting the original payroll history.

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 guidance

Under the April 2027 process, late changes will happen. Correct the benefit record, keep a note of what changed and let payroll adjust the remaining pay periods. Do not delete the old value as if it never existed—the employer should be able to explain the original figure, the correction and what happened next.

What happens if a benefit is entered late?

Use the date the benefit actually began, work out what should have been included so far and pass the correction to payroll. Payroll can then adjust the remaining periods using the applicable HMRC rules.

What should the audit trail show?

Keep the original information, the corrected information, who approved the change, what payroll adjusted and whether any HMRC report also needed correcting.

Status: Illustrative Workmax example

Illustrative changed-value allocation

A four-weekly benefit changes to £2,800 after six of 13 pay periods. £1,200 has already been payrolled.

(£2,800 − £1,200) ÷ 7 = £228.57

Result: Approximately £228.57 in each remaining period, with the final period reconciling rounding

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 information will employers report through FPS?

Status: Draft HMRC technical specification

HMRC 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: HM Revenue and Customs — Annex 3 — additional Benefits in Kind fields likely to be required on FPS returns

Source updated: . Workmax reviewed: .

How will Class 1A National Insurance contributions work from April 2027?

Status: HMRC interim guidance

HMRC’s current plan is for employers to report and pay Class 1A National Insurance on affected benefits through payroll from April 2027. Class 1A is an employer cost, not an employee deduction.

Read the full answer and official source

Employers should budget for a possible overlap in 2027: the final annual payment for 2026/27 may fall due while the new in-year process has already started.

Source: HM Revenue and Customs — Reporting Class 1A National Insurance contributions

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.
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