Tax on company benefits

3. Other company benefits you'll pay tax on

You pay tax on the value of the benefit to you, which your employer works out.

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

Loans

You’ll pay tax on low-interest or interest-free loans from your employer if they’re worth more than £10,000.

You pay tax on the difference between the interest rate you pay to your employer and the official rate of interest set by the Bank of England.

You may pay tax if your employer lends money to one of your relatives.

Check how your employer works out how much tax to deduct from your pay.

Living accommodation

If you (or one of your relatives) is living in accommodation provided by your employer you may pay tax.

How the tax is worked out depends on whether the accommodation cost more than £75,000.

Check how your employer works out how much tax to deduct from your pay.

You may not pay tax if you get the accommodation so you can do your job, or do your job better, eg agricultural workers living on farms.

Help with your Self Assessment

Use the living accommodation helpsheet if you need help with the ‘Employment’ section of your Self Assessment tax return.

Medical insurance

You usually pay tax on the cost of the insurance premiums if your employer pays for your medical insurance.

Check how your employer works out how much tax to deduct from your pay.

You can get some tax-free health benefits from your employer, eg:

  • medical insurance when you’re working abroad
  • annual check-ups