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Benefits-in-kind: Where are we now?

By Chris Thorpe, May 2021

Chris Thorpe looks at where we are with benefits-in-kind, particularly in relation to the salary sacrifice rules. 

It is very common for employees to receive non-cash remuneration in addition to their salary. In a more competitive market, many employers will add ‘perks’ to an employee’s package (e.g., a company car, health insurance, gym membership, etc.). A pension is now a compulsory addition to most jobs, but none of these are taxed in quite the same way as the cash salary.  

Taxable or tax-free? 

Benefits-in-kind (BIKs) are subject to income tax on the employee and Class 1A National Insurance contributions (NICs) on the employer; the income tax charge is based on the employer’s marginal cost of providing the benefit. In most cases, this will&nbsp

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