WFM UK | Payroll UK: BIK Module (Benefits in Kind) - User Guides

Welcome to the home of BIK Module User Guides and Articles!

Here, you’ll find everything you need to understand and use the BIK module for managing Payrolling Benefits in Kind accurately and compliantly. Whether you’re setting up BIK for the first time or refining your existing approach, the guides in this section walk through each part of the process. From configuring benefit types and employee eligibility to calculating values and reporting, you’ll find clear, practical guidance designed to reduce manual effort and compliance risk.

Explore the resources below to simplify BIK management, improve data accuracy, and ensure your reporting is correct and audit-ready.

First and foremost, the following GOV.UK guidance should be reviewed. The BIK module and processing via the Payroll module are built in line with this guidance:

• GOV.UK - Payrolling: tax employees' benefits and expenses through your payroll
• GOV.UK - Payrolling: changes affecting benefits and expenses
• GOV.UK - Benefits A to Z
  Note: Each benefit listed in the A - Z then also has extended technical guidance.

The BIK Module will be further updated ahead of the 2027/2028 Tax Year in line with the changes highlighted in:

• GOV.UK - Technical note: Mandating the reporting of benefits in kind and expenses through payroll software

Interim Support for Payrolling Benefits in 2026/27

For the 2026/27 tax year (6 April 2026 to 5 April 2027), we will only be offering a service‑led solution for payrolling benefits. Customers will still have access to the BIK module and the data already entered, but for this tax year, access will be read‑only.

To ensure employers can still meet compliance requirements, Fourth UK Payroll Operations offers customers who use the payroll module within workforce management (WFM) a fully managed Payroll Benefits in Kind (PBIK) service as a purchased add-on to support compliance with HMRC requirements for reporting and taxing employee Benefits in Kind.

• Fourth will manage the setup, administration, and reconciliation of payrolled Benefits in Kind in line with HMRC legislation.
• Fourth will ensure that all Benefits in Kind are processed accurately through payroll, reducing the need for end-of-year P11D reporting where applicable.
• Benefits in Kind will be taxed through payroll using notional values shown on employee payslips, helping to prevent year-end tax surprises.
• Employers will have access to supporting guidance and FAQs, with a dedicated enquiry line available for Benefits in Kind queries.

The PBIK service will be available as a service-only offering from 2026, with the full Payrolling Benefits in Kind module becoming available within the Fourth system as a purchased add-on in 2027, ahead of mandatory HMRC changes.

Please visit our Year-End Tax Services page for more information, including how to sign up.

User Guides

Legislation & Core Concepts

• Why Payrolling Benefits Matters & Key Concepts 
• How Payrolling Benefits Works - Happy & Unhappy Path Scenarios 
• National Insurance and Income Tax Handling for Payrolled Benefits
• Supported Benefit Types & Event Types
  • Assets transferred (cars, property, goods or other assets)
  • Payments made on behalf of the employee
  • Vouchers
  • Credit, debit and charge cards
  • Living accommodation
  • Mileage allowance payments not taxed at source
  • Company cars & car fuel
  • Company vans & van fuel
  • Interest-free and low-interest loans
  • Private medical treatment or insurance
  • Qualifying relocation expenses payments and benefits
  • Services supplied
  • Assets placed at the employee’s disposal
  • Other items
  • Expenses payments made on behalf of the employee

Instructional BIK Module Guides

• Benefits Statutory Information Page 
• Configuring Company Benefits 
  • Setting Up a Company Benefit
  • Setting Up a Company Benefit via Data Imports
  • Deleting a Company Benefit
  • Benefit Groups
• Pre Tax Year Notification
  • Preparing a Pre Tax Year Notification
  • Setting Up a Pre Tax Year Notification
  • Sending a Pre Tax Year Notification & Document Tracking
  • Employee Documents
  • Available Mail Merges
• Vehicle Management
  • Setting up a Vehicle
  • Setting up a Vehicle via Data Imports
  • Deleting a Vehicle Record
• Applying Benefits to Employees: Manual & Data Imports 
  • Applying Employee Benefits Manually (Excluding Car Benefit)
  • Applying Employee Benefits via Data Imports (Excluding Car Benefit)
  • Applying Employee Car and Car Fuel Benefit Manually
  • Applying Employee Car and Car Fuel Benefit via Data Imports
• How Payrolled Benefits are Reflected in Payroll 
• Reporting - Coming Soon
• Users - Coming Soon

Additional Resources:

• GOV.UK - Payrolling: tax employees' benefits and expenses through your payroll
• GOV.UK - Payrolling: changes affecting benefits and expenses
• GOV.UK - Benefits A to Z

Looking ahead to April 2027:

• GOV.UK - Technical note: Mandating the reporting of benefits in kind and expenses through payroll software
• CIPP - Mandatory payrolling of benefits: what we know so far