Taxation of benefit in kind

CaptainWales

I am a 20% income tax payer and my employer has offered me a benefit in kind with a value of £100. 

Does that mean that I will end up paying £20 of additional tax on the benefit?

flaneurs_lobster

CaptainWales said:

I am a 20% income tax payer and my employer has offered me a benefit in kind with a value of £100. 

Does that mean that I will end up paying £20 of additional tax on the benefit?

Yes       .

Notepad_Phil

flaneurs_lobster said:

CaptainWales said:

I am a 20% income tax payer and my employer has offered me a benefit in kind with a value of £100. 

Does that mean that I will end up paying £20 of additional tax on the benefit?

Yes       .

The OP hasn't said what their salary is just that they are a 20% income tax payer, so I believe that is only right if the OP remains a 20% income tax payer after the £100 of value is added onto their salary. If they are near to paying higher rate tax then they could end up paying a lot more tax if they get nudged into the 40% rate and lose things like marriage allowance etc.

flaneurs_lobster

Oh come on, what's the chances that the OP is earning within a ton of the 40% band?

But you're right, of course.

CaptainWales

I can confirm that I am nowhere near the 40% bracket!