The short version: A benefit in kind is a perk from your employer that isn’t cash. Think company car, private health insurance, or gym membership. Most of them are taxable.
Why are they taxed?
HMRC doesn’t want people dodging Income Tax by taking perks instead of salary. So they tax the value of most benefits as if they were income.
What’s taxable?
Company cars (especially if you use them personally), private medical insurance, and fuel for private use. Non work clothing too, unless it’s a uniform or safety gear.
What’s tax free?
Work phones (if the contract is in the company’s name), staff canteen meals, training, pension contributions, and on site gym facilities. These don’t count as taxable benefits.
Where do I find mine?
Your employer reports them to HMRC on a P11D form. You should get a copy showing what benefits you received and their value.
Got benefits you’re not sure about? Give us a shout and we’ll tell you what’s taxable.
