Company perks like cars, medical cover, gym memberships or loans are usually taxable benefits in kind. We work out the tax for employees and handle the P11D reporting and Class 1A National Insurance for employers.
Benefits in Kind & P11D
Most non-cash perks an employer provides, company cars and fuel, private medical insurance, interest-free loans over £10,000, gym memberships and more, are taxable benefits in kind. Employers must report them on a P11D each year and pay Class 1A National Insurance, and employees pay Income Tax on the value. Getting the valuations and reporting right matters for both sides.
Your Tax Help Accountants prepares accurate P11Ds for employers, calculates the Class 1A National Insurance, and advises employees on the tax effect of their benefits. We also identify perks that are exempt or tax-efficient, such as electric cars, trivial benefits and workplace pensions, so you provide perks in the smartest way.
Not all perks are taxable, trivial benefits under £50, workplace pensions, and certain health interventions can be exempt, while electric cars are highly efficient. Structuring benefits well can reward staff at far lower tax cost than cash.
The Detail That Matters
Perks your employer provides, company cars, medical insurance, loans, gym memberships, are benefits in kind, taxed on top of your salary and reported on a P11D. Getting the values and the reporting right, and knowing what is exempt, keeps the tax correct.
Most non-cash perks are taxable at their cash-equivalent value, but a range of benefits are exempt: employer pension contributions, mobile phones, up to £500 of pensions advice, certain training, and trivial benefits under £50. Knowing the exemptions avoids paying tax on things that are free of it.
The taxable value is added to your income and taxed at your marginal rate, usually collected by adjusting your tax code, so a benefit can quietly reduce your take-home pay for months. The employer also pays Class 1A National Insurance at 15% on most benefits.
Employers report benefits on a P11D after the tax year, though many now payroll benefits in real time instead. From April 2026 payrolling most benefits becomes mandatory, so getting your systems and figures right now matters for employers.
Trivial benefits under £50 (not cash, not a reward for work) are a genuinely tax-free way to reward staff. Salary sacrifice for pension, cycle-to-work or electric cars swaps taxable salary for a lower-taxed or exempt benefit, saving both tax and National Insurance.
Two things catch people out: paying tax on benefits that are actually exempt (like a work mobile or trivial gifts), and employers mis-valuing a benefit on the P11D, which leaves the employee overtaxed through their code.
Key Figures
How We Help
We prepare accurate P11Ds for employers, report every benefit correctly, and calculate the Class 1A National Insurance due, filed on time.
We explain the Income Tax effect of your benefits, from cars to medical cover to loans, so you understand what each perk really costs you.
We identify exempt and efficient benefits, trivial benefits, electric cars, pensions, so employers reward staff at the lowest tax cost.
All the forms, calculations and correspondence handled on your behalf, so you never have to decode HMRC's rules or sit on hold.
A clear fixed fee quoted after a free call, your position explained in plain English, and never a surprise bill.
We act quickly, and where earlier years are involved we put those right too, reclaiming refunds or minimising penalties.
P11D errors and late filing bring penalties for employers, and employees are often surprised by benefit-in-kind tax on perks they thought were free. We keep the reporting right and help structure perks efficiently.
Recent Client Outcome
An employee was being taxed through their code on a work mobile phone and a modest staff gift, both of which they assumed were taxable benefits.
What we did. We identified that a single employer-provided mobile phone is exempt, and that gifts under £50 qualify as trivial benefits, so neither should have appeared on the P11D. We had the P11D corrected and the tax code adjusted.
The outcome. The incorrect benefits were removed, the overpaid tax refunded through the code, and we advised the employer on payrolling benefits ahead of the 2026 changes so the errors would not recur.
Knowing exactly which perks are exempt stopped the employee being taxed on benefits that carried no tax at all.
Why People Come to Us
Questions Answered
Free fifteen-minute call. Fixed quote within twenty-four hours. Your return filed, every expense claimed, your bill explained, and salon VAT, payroll and accounts handled if you own a salon. Same accountant, start to finish.
Or email info@yourtaxhelp.co.uk, we typically respond within two business hours.
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