1. Overview

As an employee, you pay tax on company benefits like cars, accommodation and loans.

Your employer takes the tax you owe from your wages through Pay As You Earn (PAYE).

The amount you pay depends on what kind of benefits you get and their value, which your employer works out.

Check your Income Tax to see how company benefits affect the tax you pay.

Some company benefits can be tax-free, eg childcare and canteen meals.

You have to pay tax and National Insurance on things that are paid in cash, as they’re treated as earnings.