The UK government’s plan to modernize the tax system by mandating the payrolling of Benefits in Kind (BiK) has been a significant topic for employers, payroll providers, and software developers. Originally set to take effect from April 2026, the mandatory payrolling of BiK has been delayed to April 2027, giving businesses an extra year to prepare for this major shift. This blog explores the implications of the delay, what mandatory payrolling entails, and how employers can prepare, drawing on the latest updates from HMRC and industry insights.