Answers · UK 2025/26
What is Benefit-in-Kind (BIK) in the UK?
A Benefit-in-Kind (BIK) is a non-cash benefit your employer provides — company car, private medical, gym, interest-free loan over £10k. BIK has a taxable cash equivalent value, taxed at your marginal Income Tax rate. Employer pays 15% Class 1A NIC on it.
Full answer
UK Benefit-in-Kind (BIK) 2025/26. Definition: any non-cash benefit your employer gives you that has a personal value. Examples: company car (with or without private fuel); private medical insurance; gym membership; interest-free or low-interest loans over £10,000; non-business travel paid by employer; company accommodation; company-paid telephone or internet for personal use; subsidised canteen meals; financial assistance with relocation over £8,000. Reporting: employer files form P11D by 6 July each year, OR (increasingly) "payrolls" benefits in real-time through PAYE. From April 2026, payrolling will be mandatory for most BIK except interest-free loans and accommodation. Tax: BIK is added to your taxable income, taxed at your marginal rate (20%/40%/45%). Employer pays Class 1A NIC at 15% on the cash equivalent (raised from 13.8% in April 2025). Common BIK values 2025/26. Company car: list price × CO2-banded % (3% for EVs, up to 37% for high-emission petrol/diesel). Fuel benefit (private fuel): £28,200 multiplier × car BIK % — so £28,200 × 25% = £7,050 taxable. Private medical: cost to employer. Beneficial loan: difference between official rate (2.25% 2025/26) and what you pay; under £10,000 threshold is exempt. Trivial benefits exemption: ≤£50 per benefit, not cash, not contractual — exempt (e.g. a £30 birthday voucher).
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.