Receiving a perk from your employer on top of regular salary can result in additional tax to pay depending upon the perk. Things like company cars, fuel, interest-free loans, private health cover, expenses that are not related to business and more can be liable to tax as they are classed as taxable benefits in kind.
Everything must have a cash equivalent value in order to work out the tax. Company cars have a specific calculation to come up with the cash equivalent value and we have a company car tax calculator specifically for that.
Use the calculator below for all other types of benefit in kind. You will see the difference to the take home pay and can weigh up whether the benefit is worth the extra tax you pay.
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BIKs (Benefits in Kind) are chargeable to income tax for the employee and Class 1A national insurance for the employer, which in the employers case just covers the shortfall in the employers national insurance they would pay on a higher salary.
