4.1ÌýÌýÌýÌý Reporting and payrolling benefits-in-kind (BIKs)
Benefits-in-kind (BIKs) are PAYE income which are not a 'payment' (1.1). Therefore, they cannot generally be subject to deduction of tax but may be taken into account in determining the employee's code (2.1.2). However, the collection of tax on certain benefits-in-kind through the PAYE (PBIK) system is possible in certain circumstances. This is discussed below.
Round sum allowances are PAYE income and subject to withholding even if they are paid with the view of recompensing an expense (see
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