Are benefits in kind taxable?

Most benefit in kind are taxable and must be declared for the purpose of taxes to tax authorities. The value of the benefit is usually determined as a market value or the cost to the employer. Staff may have to pay income tax on the benefit and their employer may be obliged to pay National Insurance or a similar payroll tax. However, there are some BIKs that are tax exempt, for example, work related training, or employer provided safety gear. For this reason, it is essential for employees and employers to understand how various benefits are taxed to comply with the tax laws.