About benefits in kind
Benefits in kind (BIKs) are anything you receive from your employer for free or at a reduced cost such as:
- accommodation
- a company car
- company shares
BIKs are sometimes known as employee or employment benefits.
Controlling directors are taxed on BIKs the same way as an employee.
Any allowances, cash payments or reimbursement of out of pocket expenses are not benefits in kind. They are part of your salary.
Employment income and tax
Benefit in kind information for employers
Paying tax on benefits in kind
You will pay tax on the value of the benefit less any contributions you make towards the benefit.
Value of benefits in kind
Tax is not deducted at the time you receive the employment benefit.
Your employer should provide you with a statement with the total of all taxable benefit in kind amounts at the end of the year. You need to declare any benefit in kind on your personal tax return and pay tax on it.
You may need to make an extra payment to cover the tax due, especially if the value of the BIK is substantial.
Not all benefits in kind are taxable, some are exempt and you don't pay any tax on them.
Exempt benefits in kind
Refusing a benefit in kind
You can refuse a benefit in kind from your employer.
If you refuse a BIK you must tell Revenue Jersey in writing. You must state which benefits you refused and the year of assessment it relates to.
If your employer offers an alternative to the benefit this will be subject to tax.
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