Who this article is for:
Limited companies
Categories explained: Employee Benefits
Your company may pay for certain benefits for any employee. This is normally taxed as a benefit in kind (BIK) and your employee usually pays tax on the value of the benefit. The employer also has to pay Employer's NI on the value
What's included
Gift cards, tickets & vouchers
Employee living accommodation
Employee loans
Employee relocation expenses
Employee medical
Educational assistance for employee
Tax paid for employee
What's not included
You don't have to pay or report anything on the following health benefits:
Salary sacrifice arrangements - this goes through payroll
Salary costs
Trivial benefits paid for directors
Xmas party allowance
How is it taxed?
If the benefit is deemed taxable then a Benefit will be calculated and filed on a P11D submission - and the employee must pay personal tax on it. The company is also liable to make National Insurance Contributions.