Benefits in kind: what to tell us
Tell us all of your non-cash benefits before we file your Self Assessment return
If your company provides non-cash benefits, they create personal tax obligations known as ‘benefits in kind’. Telling us before a benefit starts lets us plan correctly.
Common director benefits in kind
- Private medical insurance: the premium is the benefit in kind value. You pay Income Tax on it through Self Assessment. The company pays Class 1A National Insurance contributions at 15% annually.
- Company car: taxed on list price multiplied by a CO2 percentage. Electric cars (4% for 2026/27) are highly tax-efficient compared to high-emission vehicles.
- Interest-free loans above £10,000: the notional interest is a benefit in kind.
What is exempt
One company mobile phone, trivial benefits under £50 each (up to £300 per year for directors), employer pension contributions, and workplace parking are exempt. There is no reporting required for these.
💡 Good to know: Tell us before providing yourself with any new company benefit. We can calculate the personal tax cost and Class 1A National Insurance contributions before you commit, so there are no surprises at year end.
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