what is benefit in kind

A benefit in kind (BIK) is a non-cash benefit that an employer provides to an employee in addition to their normal salary or wages. These benefits have a monetary value and are taxable as part of the employee's income. Examples include company cars, private health insurance, accommodation, interest-free loans, mobile phones, and subsidized meals. Unlike direct cash payments, benefits in kind are valued differently depending on the type and are subject to specific tax rules. Employers must usually report these benefits and deduct tax accordingly. These perks can boost employee satisfaction but do create tax obligations for both parties.