These are known as ‘benefits in kind’. An enhanced package can help to attract and retain key employees, but there are tax implications for both the employer and the employee if benefits in kind are offered. It is important to be aware of the tax implications, to set up procedures to identify and record all benefits in kind that the employer provides to staff, and to ensure that any relevant tax is paid.

This factsheet explains the various types of benefits in kind that can be provided to employees and outlines which ones are taxable and which ones are exempt from tax. It explains the requirements of the tax system and the reporting procedures that must be followed to ensure that employers comply with their obligations.

Employers should consult a professional adviser before making any decisions about the provision of benefits in kind.