Services and goods provided by a company to an employee may be classed as benefits in kind and will be taxable on the employee.

Such items include company cars, accommodation, health insurance etc.

The company is required to complete declarations each year detailing all benefits made available to individual employees and must submit these to the Inland Revenue by 6 July of the following tax year.

The company must pay national insurance on the total of the taxable benefits for all employees at the rate of 12.8%.

Calculating the taxable value of benefits can be complicated and professional advice must be sought.

The calculation of the benefit for using a company car is based upon the level of CO2 emissions of the engine.