Benefit In Kind

Benefit In Kind (BIK)

Benefit in kind is the term used by the Inland Revenue to assess the tax liability you have to pay on a company benefit such as car or fuel allowance. If a company car is provided by an employer the employee is required to pay tax on the value of that car. From April 2002 this is calculated using the P11D value of the vehicle, the CO2 rating of the vehicle and the tax band of the employee either 22% or 40%.