Please note that the information in this article only relates to Onto for Business accounts.
A benefit in kind (BIK) is an added perk or benefit that’s given by an employer and isn’t included in the employee’s salary. Examples include company cars, child care vouchers and medical insurance.
Benefit in kind tax
HMRC requires you to pay tax on any benefit that can be used during business hours and your personal time, such as a car.
The UK Government provides a scale of charges depending on a car’s emissions. For electric cars, the BIK tax is 1% in 2021/2022 and 2% in 2022/2023.
Got any questions?
Please get in touch with our Onto for Business team by emailing business@on.to. We’ll be happy to help!