Employee benefit in kind
An employee benefit in kind is a non-cash benefit provided through employment, such as private use of a company car or employer-provided accommodation. It can form part of a reward package. Accounting measurement and tax treatment depend on the applicable rules; the ordinary reward concept does not establish a particular taxable value.
Worked example
An employer provides a car available for private use alongside salary. The employee values the benefit, while payroll and reporting staff assess the separate tax and accounting requirements.
Common mistake
Assuming a non-cash benefit has no cost, cannot be taxable or must be valued at the same amount for accounting and tax.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| ACCA | SBL | Supporting | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |