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Benefits in kind vary widely. Also, a few common benefits include company cars, medical insurance, gym memberships, and mobile phones.

Furthermore, other examples include meal allowances, living accommodation, and interest-free loans. Certain employment benefits, like childcare assistance or electric cars, may qualify as tax-free benefits.

How Tax Works for Benefits in Kind

The tax treatment of BIKs depends on their type and usage. Many taxable benefits that employer pays require employees to pay income tax on the benefits taxable value. Such taxable benefits, include: personal use of a company car.

However, in such cases, HMRC assesses factors like personal use or the car’s carbon dioxide emissions when determines the BIK tax. Employers may also deduct National Insurance Contributions (NICs) through payroll for some benefits.