02: The 'cash equivalent'
The cash equivalent is taxed as if it had been added onto your income – typically through your PAYE coding. So if the cash equivalent of a particular perk were £2,000 and you were a higher rate tax payer, the income tax charge would be £800 and the employer would pay class 1A NICs of 13.8%, i.e. £276.
Some benefits are not normally taxable, e.g. contributions within the annual allowance to registered pension schemes and the provision of a single mobile phone (including a smartphone).Last Updated
Tax rules are subject to change. The FCA does not regulate tax advice.