No, Benefit in Kind (BiK) doesn’t get added to your salary. Instead, it is a tax on some benefits you may receive from your employer, like a company car, and usually collected through PAYE (pay-as-you-earn). Is BiK paid before tax? Yes, BiK is paid before tax is deducted from...
Benefit in Kind (BiK) (also referred to as company car tax) is a tax on employees who receive perks or benefits from their employer in addition to their salary. For company cars, the BiK rate is a percentage of the vehicle’s value that is added to the employee’s taxable income. Thi...
distinct from ordinary motor trade businesses. That's why, for example, our classic car insurance covers vehicles on an agreed value basis, rather than on typical market value. A car that's a rare artefact, practically a work of art, is a different kind of asset than an everyday runabout...
Companies pay National Insurance on Benefit in Kind (BIK), which includes non-cash based ‘benefits’ like company cars. While EVs are still subject to tax on BIK, the electric company car tax rate is only 2% of the EV’s taxable list price (P11D value). To put this in perspective,...