Car
A company car is a common benefit in kind. The amount of tax due depends on factors such as the car's value, fuel type and CO₂ emissions. Electric cars often attract lower tax charges than petrol or diesel vehicles.
Van
Vans are taxed differently from cars. If a van is used mainly for business and private use is limited, the tax charge may be reduced or avoided. However, allowing significant personal use can create a taxable benefit.
Fuel
If a company pays for fuel used for personal journeys, this can create an additional taxable benefit. In some cases, it may be more tax-efficient for employees to reimburse private fuel costs.
Medical & Dental Insurance
Private medical and dental insurance provided by an employer is usually a taxable benefit in kind. While these benefits are popular with employees, they often need to be reported to HMRC.
Gym Membership
Paying for an employee's gym membership will normally create a taxable benefit. Businesses should understand the tax implications before offering this type of benefit.
Loan - Below Market Rate
If a company provides a loan to an employee or director at a low interest rate, HMRC may treat the saving in interest as a taxable benefit.
Personal Expenses
When a company pays personal expenses for an employee or director, such as household bills, subscriptions or private costs, this can create a taxable benefit in kind.