Don't be a berk over work perk

Company benefits can be an income tax liability

- WARREN SHUTE

Benefits in kind - or unkind? Check how much they are costing you...

Our tax system is notoriously complex. Take income tax for example: The headline numbers, as a general rule, are that the first £12,570 of our income is tax-free; the next £37,700 is taxed at 20%; and income over £50,270 is charged at 40%. There's a higher rate of 45% for earnings over £125,140.

We pay National Insurance on top and it's different in Scotland.

But it's not just on our "cash income" such as salary and bonuses that we pay income tax on - we also pay tax on certain benefits in kind (BIK) or "non-cash benefits" that we receive in employment, such as a company car or medical insurance.