Glossary · UK
What is BIK (Benefit in Kind)?
Non-cash benefits from your employer that are taxable as income.
Full Definition
BIK (Benefit in Kind) is any non-cash perk provided by your employer that has taxable value: company car, private medical insurance, gym membership, interest-free loans over £10k, low-cost rent on employer property, asset transfers. Reported annually on form P11D (or payrolled in real-time). Tax is paid by the employee at their marginal income tax rate (20/40/45%). Employer pays Class 1A NI at 15% (April 2025+). EV company cars are 3% BIK in 2025/26 — exceptionally low.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.