Most benefits are taxable, meaning they are included in an employee’s taxable income for income tax purposes. Employment benefits do not qualify as chargeable for National Insurance Contributions. Common taxable benefits include:

Company cars: Having access to use company vehicles for personal use is considered as a Benefit in Kind (BIK) and a financial value is usually assessed for personal tax purposes. The assessed value of the benefit is calculated based on various factors like the car’s list price, CO2 emissions, and fuel type. A BIK forms part of the employee’s gross taxable earnings and the employee will be eligible to pay income tax and National Insurance contributions through their payslip.

Private medical insurance: The cost of providing private medical insurance is also a taxable benefit. The full benefit is subject to income tax and National Insurance contributions like any other forms of employment income.

Accommodation: If an employer provides accommodation to an employee, the value of the accommodation is taxable as gross earnings.

Other non-cash benefits: Non-cash benefits such as gym memberships, childcare vouchers, Gift Voucher and personal use of company assets are also taxable.