[ˈbɛnɪfɪt ɪn kaɪnd]
A Benefit in kind is a non-cash perk provided to an employee by an employer such as a company car. They may be subject to Income Tax.
A Benefit in kind (BIK) is a non-cash benefit provided by an employer to an employee as part of their job. Some examples of BIKs may include health insurance, mobile phones and company cars.
Some BIKs are tax-free. However, some like company cars are subject to tax as they are considered a type of income. The value of the benefit is calculated based on the market value of the BIK and the employee's tax bracket. Employers are responsible for reporting BIKs to HMRC and deducting any taxes owed from the employee's pay.
BIKs can be a great way for employers to attract and retain talent but tax implications should be considered by employers
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