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UK Taxation : What is exactly a benefit in kind?


I'm just studying for the CeFA exam and I keep coming accross the above term. I can't find a precise definition for it. Any ideas?

There is no exact definition, its essentially when an employee receives the benefit of their company paying something on their behalf. I.e providing a company car or paying for private medical insurance. The value of receiving the benefit is then declared on a form p11d and tax paid on the benefit.
A benefit in kind ia a taxable benefit given to an employee by an employer, i.e. company car, medical insurance etc. For employees earning over 拢8,500 p.a., the cash value of these benfits are taxed as though they were earned income.

Ie. If a company provides benefits to an employee (earning over 拢8,500p.a.) worth 拢1,000 a year, if the employee is a basic rate taxpayer, they will pay 拢220 tax (@22%).
Months of studying the dreaded G10 exam!
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