What is benefit-in-kind and what are the taxation implications?
When a benefit is provided to an employee in lieu of money, it may be seen as a benefit-in-kind. There may be benefit-in-kind’ tax and National Insurance implications if you provide expenses payments to your employee for certain items or provide other non-cash benefits unless, as HM Revenue & Customs phrases it, any private use is ‘not significant’. These can include things like a company car or private medical insurance, and depending on the level of private use could include providing a broadband connection for home employees. Certain benefits, like using a company PC for personal use or childcare facilities, are exempt. Further guidance can be found on the HM Revenue & Customs site – http://www.hmrc.gov.uk/biks/ is a good starting point.