Research and analysis

Non-taxable benefits in kind: survey of employees

Quantitative research exploring the incidence and nature of non-taxable benefits in kind received by employees in the UK.

• From: HM Revenue & Customs
• Published: 27 June 2019

Documents

Non-taxable Benefits in Kind: Survey of Employees

Ref: HMRC Research Report 543

PDF, 4.63 MB, 151 pages

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Details

Benefits in kind (BiKs) are non-cash benefits provided to employees as part of their remuneration package and are therefore included in the calculation of a taxpayer’s employment income. Whilst many non-cash benefits are taxable, some are specifically exempt from tax, or the cost to the employer of providing the benefit is so marginal that the value is regarded as nil. Consequently, such BiKs incur no tax liability.

The research carried out by IFF Research, consisted of a nationally representative telephone survey of 1,528 adult employees in the UK, sampled from HMRC administrative data. The research provides new evidence on the incidence and nature of non-taxable BiKs that employees receive. The research also provides an insight into employees’ perceptions of BiKs and the perceived financial value they place on them, whilst exploring their wider awareness and understanding of the tax status of particular BiKs.

The findings of this report cover:

• the incidence of non-taxable benefits in kind amongst employees, including which BiKs are most prevalently offered and used
• the levels of understanding among employees in relation to the taxable status of BiKs
• the perceived financial value that employees placed on particular non-taxable BiKs
• the extent to which non-taxable BiKs impacted employment decisions, for example feeding into discussions regarding employees’ pay package

Published 27 June 2019