Check your Income Tax to see how company benefits affect the tax you pay. Some company benefits can be tax-free, like childcare and canteen meals. You have to pay tax and National Insurance on...

Feb 5, 2016 · How to report expenses and benefits you provide to employees or directors. If you’re intending to payroll benefits and expenses, you must register them with HMRC using the payrolling employees...

You can see how much tax you might pay with HMRC’s company car and fuel benefit calculator.

Mar 27, 2025 · For the 2025 tax year, HMRC continues to offer low BIK rates for electric and low-emission vehicles to promote environmentally friendly travel. For fully electric cars, the bike rate remains at 2%, making them a cost-effective option for both employers and employees.

The BIK bands are set by HMRC and are based on a vehicle's CO2 emissions. A rate applies to electric or alternative fuel cars that emit zero CO2 emissions.

To simplify payroll management, HMRC has introduced clearer guidelines for calculating taxable benefits, especially for low-emission company cars. This ensures accurate deductions and reduces confusion for payroll teams.

Jan 21, 2025 · Mandatory payrolling of BIK for income tax and Class 1A NIC purposes will go ahead from April 2026. The reporting process for BIKs will be through the Full Payment Submission (FPS), the same process currently used to report salary to HMRC.

Jan 15, 2025 · What is a Benefit in Kind (BIK)? A BIK is any non-cash benefit provided by the company to its employees or directors, such as a company car, private health insurance, or fuel for personal use. These benefits are subject to tax and must be reported correctly.

Jun 20, 2024 · Benefit in kind tax (or BIK tax) is a complex topic, and there are several obligations you need to meet as a UK employer when it comes to offering BIKs to your employees. In this post, we’ll explain what benefits-in-kind are, how BIKs work, and why it's …

Oct 31, 2024 · BIK uses tax bands based on CO2 emissions (and electric range for plug-in hybrids) as well, which are published by HMRC. You can see the tax bands in the table below and the band a car sits in dictates what percentage its P11D value – also known as the BIK value – it will be taxed on.