This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

How much is my benefit-in-kind worth?

Shared from Tax Insider: How much is my benefit-in-kind worth?
By Meg Saksida, January 2024

Meg Saksida explores the rules on valuing benefits-in-kind for income tax purposes. 

As an employee, it is normal to receive and to be taxed on the worker’s salary, wages and bonuses for the work performed in the employment. However, employers may also wish to remunerate the employee by providing benefits-in-kind.  

These additional benefits are also taxable, but on what value of this benefit does the employee need to pay income tax? 

What is the cash equivalent? 

The basic premise for the value of the benefit for taxation purposes is the ‘cash equivalent’ of the benefit provided. How much it cost the employer to provide the benefit will determine how much the employee is taxed.  

For example, if an employee receives private medical insurance, which costs the employer £1,000 a year, the taxable amount will be £1

This is one of our 2523 Premium articles

To see this article in full and unlock access to our complete library of 2523 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee