From 6 April 2016 employers can also agree with HMRC to payroll Benefits in Kind (BiKs). All BiKs can be payrolled a part from: vouchers and credit tokens, employer provided living accommodation and beneficial loans.
Payrolling is a voluntary arrangement that means that income tax is collected through payroll. Class 1A NICs will still be collected on form P11D(b). Charities who wish to payroll must register to do so before the start of the tax year in which they wish to begin payrolling, e.g. for the 2017/18 tax year charities must register with HMRC before 6 April 2017.
Consult HMRC’s guidance for more details.