On 17 September 2026, HMRC confirmed that employers may exclude globally mobile employees (GMEs) from the mandatory payrolling of benefits in kind (BIK) starting from the 2026/27 tax year. The guidance also clarifies the Class 1A National Insurance Contributions (NIC) position for voluntary payrolling arrangements. This concession recognises the administrative complexity of valuing and reporting benefits for employees who work across multiple jurisdictions during a tax year.
Key Takeaways
- Mandatory Payrolling Exception: GMEs can be excluded from the mandatory payrolling regime, allowing employers to report their benefits via the traditional P11D process instead.
- Class 1A NIC Clarity: For employers who choose to voluntarily payroll benefits for GMEs, Class 1A NIC remains due at the usual time, but the calculation must reflect only the UK-attributable portion of the benefit.
- Definition of GME: HMRC defines a globally mobile employee as one who performs duties in more than one country during the tax year, including short-term business visitors and assignees.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement