Tax and payroll
Benefit in kind
A non-cash perk from your employer that's taxed as if it were income, such as a company car, private medical insurance or a loan at low interest. Some benefits are exempt, such as employer pension contributions.
A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.
You'll hear it as
The private medical cover is a benefit in kind, so it changes my tax code.
Why it matters to you.
A perk can cost you tax every month. Factor that in when you compare offers.
Also called BIK.
Related terms.
Videos.
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