A Benefit in Kind (BIK), also known as a “perk” or “fringe benefit,” refers to any non-cash benefit or advantage that an employer provides to an employee in addition to their regular salary. It’s a type of compensation that isn’t cash.

Examples of benefits in kind:

Company cars: When an employer provides a car for personal and business use

Housing: If an employer provides accommodation or pays for rent or a mortgage (accommodation paid for by the company for a business trip is not a BIK)

Health insurance: When an employer offers health insurance coverage to employees and their children

Gym memberships: When an employer provides access to a gym or fitness facility

Meals and entertainment: Offering free meals, restaurant vouchers, or tickets to shows or events (meals paid for by the company when on a business trip away from home is not a BIK)

Childcare: Offering subsidized or on-site childcare facilities

You can find the whole list on HMRC’s website: Expenses and benefits: A to Z – GOV.UK (www.gov.uk)

The value of these benefits is subject to income tax and national insurance contributions so it’s important that employers and employees are aware of the tax implications before these are offered.

If you need help with payrolled benefits and P11Ds, we’d love to hear from you: hello@opticsaccounting.co.uk