Benefits In Kind

I have heard it said that during the high taxation days in the 1970s companies puts lots of effort into offsetting the pay of staff with benefits. The most obvious example being a company car. The idea being that the employee did not need to buy a car and so could earn less salary without a decline in their living standard.

Understandably, successive governments have put effort into neutralizing the effect of these benefits – hence the phrase “Benefit in kind” which is the tax increase which an employee pays for receiving the benefit.

The following have taxable benefits – company cars, accommodation, re-location costs over £8,000, expenses that are not demonstrated to be for the purpose of the business, loans, season tickets (for travel rather than sport), medical insurance. These are all out of bounds, we do plan to describe each in detail.

Your employer needs to provide a P11D by 6th July for the previous year. This states the benefits you received in that year and hence the taxation treatment.