Is Benefit in Kind?

A Benefit in Kind (BIK) is any non-cash benefit of monetary value that you provide for your employee. These benefits can also be referred to as notional pay, fringe benefits or perks. The benefits have monetary value, so they must be treated as taxable income.

What is meant by benefits in kind?

A: Benefit-in-kind (or BIK) is a tax on employees who receive benefits or perks on top of their salary. If you have a company car for private use, you will have to pay a BIK contribution, or company car tax. Every car has a BIK percentage banding.

What is an example of benefit in kind?

Benefits-in-kind. These are benefits that an employee receives that cannot be converted into cash but have a cash value. Examples include provision of a company car, loans given at a special rate or provision of accommodation. Benefits (other than benefits-in-kind).