Benefits in kind and PAYE

Benefits in kind and PAYE

Employers are obligated to collect tax on Benefits in Kind (BIK) through the PAYE system. However, this can be an onerous and problematic responsibility for employers. This brochure outlines the key rules for employers when it comes to BIK.

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Head of Employment Tax Services

KPMG in Ireland


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Benefits in kind and PAYE

BIK value

Employers are required to value the BIK. Best estimates should be used. For most BIK items, the cost incurred by the employer in providing the BIK is to be taken as the value of the BIK for tax purposes. However, the foregoing general rule does not apply in all cases. There are some exceptions.

Use of employer accommodation

If the employer owns the accommodation, the BIK to be put through payroll is either:

  • 8% of the value of the property, or
  • The market rent of the property

Download our PDF to find out more.

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