It’s National Payroll Week, so naturally we thought this would be an appropriate time to talk about payroll.

For those of you who don’t spend your working days thinking about PAYE, tax codes and National Insurance (and quite frankly, why would you?), National Payroll Week is a chance to recognise the professionals behind the payslips and shine a light on the payroll sector.

And it’s a pretty significant sector. Payroll contributes £474 billion to the UK economy each year through the collection of Income Tax and National Insurance, making it one of the most important functions in British business.

Impressive stuff.

But whilst the numbers are impressive, we’re much more interested in the people behind them. Here at Quove, that means our payroll team – Beki and Debbie, whom many of our clients will already know and who have been affectionately dubbed our “Payroll Princesses” by more than one client, alongside Holly, Lili, Troy and Devon.

From calculating wages and processing payslips to keeping up with ever-changing legislation, they work away behind the scenes to make sure our clients’ payrolls are accurate, compliant and processed on time.

And, as there are a few changes coming down the payroll-shaped pipeline, we thought we’d take the opportunity to run through some of the things employers should have on their radar.

Mandatory payrolling of Benefits in Kind

First up, Benefits in Kind (BiKs).

The current system of reporting Benefits in Kind is about to change, and HMRC is introducing mandatory payrolling in phases.

From 6 April 2027, Phase 1 of mandatory payrolling will apply to:

• Company cars
• Car fuel
• Vans
• Van fuel
• Employer-provided medical benefits

Most other Benefits in Kind will follow from April 2028, although employer-provided loans and accommodation will remain outside the mandatory regime for the time being.

So, what does ‘payrolling’ actually mean?

In simple terms, the taxable value of these benefits will be processed through payroll, meaning the Income Tax due will be collected in real time during the tax year, rather than being dealt with retrospectively.

Which sounds straightforward enough. But, as is often the case with tax, there is a little more to it than that.

Employers should start preparing now, making sure their payroll software and processes are ready and, importantly, talking to employees about what the changes could mean for them.

This is particularly important for employees who currently pay tax on their Benefits in Kind in arrears. From April 2027, tax on Phase 1 benefits will instead be collected during the tax year in which the benefit is provided.

This could mean that some employees temporarily find themselves paying tax on benefits from the previous tax year at the same time as tax is being collected on their 2027–28 benefits.

No, they haven't suddenly been taxed twice on the same benefit.

But it might look a little like it.

Early communication should therefore help avoid a few raised eyebrows when employees see changes to their tax codes and take-home pay.

If the change creates financial difficulty for an employee, they can contact HMRC to discuss the options available based on their individual circumstances.

If you’re an employer and you’re not quite sure what mandatory payrolling means for you, don’t panic. We’re happy to help.

Mileage Allowance rates change for 2026–27

Sticking with payroll for a moment, there has also been a change to Approved Mileage Allowance Payments (AMAPs)for the 2026–27 tax year.

The rates have:

• Increased to 55p per mile for the first 10,000 business miles
• Remained at 25p per mile for business miles over 10,000

The increased rate is backdated to 6 April 2026.

So, if you currently reimburse employees at the old rate, this is probably a good time to have another look at your mileage policy.

What about previous mileage payments?

If you have already paid employees mileage at rates above the old approved rates, there may have been Income Tax and/or Class 1 National Insurance deducted which is no longer due under the new rates.

If this applies to you, payroll for previous months in the 2026–27 tax year can be corrected so that overpaid tax and both employer and employee Class 1 National Insurance contributions can be refunded.

If that all sounds a little more complicated than simply putting 55p into a spreadsheet, you know where we are.

Companies House brings more changes

And, because apparently payroll wasn't enough to keep everyone busy, Companies House is also making changes.

Since August 2026, GOV.UK One Login has become the main sign-in option for the Find and update company information service.

New users must use GOV.UK One Login, while existing Companies House users can continue using their current login details for now. These users will need to move across to GOV.UK One Login in the future, with Companies House letting them know when they need to do so.

For anyone who hasn't encountered it yet, GOV.UK One Login allows you to use one email address and password to access a range of government services. There is also a second security check using either an authenticator app or SMS.

A word about shared Companies House accounts

If several people in your business currently share one Companies House account, this is worth paying attention to.

A GOV.UK One Login belongs to one individual, so each person who needs access should have their own Companies House account linked to their own GOV.UK One Login.

In other words, the days of everyone knowing the same login details are numbered.

Companies House has warned that continuing to share an account after it has been linked to GOV.UK One Login could trigger security checks and potentially lock users out.

Probably best not to wait until you're halfway through filing something important to discover that.

Objections to company strike-off

There is another Companies House change coming in December.

From 1 December 2026, objections to a limited company being struck off the register must be submitted through the ‘Make an objection’ online service. Email objections will no longer be accepted.

Companies House says the new process will make submitting objections easier, quicker and more secure.

So, there we have it. A National Payroll Week roundup covering payroll, Benefits in Kind, mileage rates and Companies House.

Perhaps not quite as exciting as cake, but nevertheless important things to have on your radar.

Our payroll team are kept pretty busy making sense of all these changes so that our clients don't have to. If you have questions about payroll, Benefits in Kind, mileage payments or any of the upcoming changes, please get in touch.

We’re always happy to help – although we can’t promise that we’ll make the tax legislation any more exciting.

Categories: Positive Accountant