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.

You’ll always pay tax on benefits from your job if one of the following applies:

  • you’re a company director
  • you earn £8,500 a year or more (including the value of the benefits)

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

You don’t usually have to pay National Insurance on company benefits if they’re not paid in cash.