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As an employee, you pay tax on company benefits like cars, accommodation and loans.

Your employer takes the tax you owe from your wages through Pay As You Earn (PAYE).

The amount you pay depends on what kind of benefits you get and their value, which your employer works out.

Check your Income Tax to see how company benefits affect the tax you pay.

Some company benefits can be tax-free, like childcare and canteen meals.

You have to pay tax and National Insurance on things that are paid in cash, as they鈥檙e treated as earnings.

You鈥檒l pay tax if you or your family use a company car privately, including for commuting.

You pay tax on the value to you of the company car, which depends on things like how much it would cost to buy and the type of fuel it uses.

This value of the car is reduced if:

• you have it part-time
• you pay something towards its cost
• it has low CO2 emissions

If your employer pays for fuel you use for personal journeys, you鈥檒l pay tax on this separately.

If you drive a hybrid

If your company car has CO2 emissions of 1 to 50g/km, the value of the car is based on its zero emission mileage figure, or 鈥榚lectric range鈥�. This is the distance the car can go on electric power before its batteries need recharging.

Contact your employer to find out your car鈥檚 zero emission mileage figure.

Check or update your company car tax

Tell HM Revenue and Customs (HMRC) if your car or fuel details change. You can check or update your company car tax online, for example if:

• you get a company car or give one back
• your employer starts or stops paying for fuel for you to use personally

If a change affects the value of the car, HMRC will update your tax code so you pay the right tax.

Estimating the tax you鈥檒l pay

You can see how much tax you might pay with HMRC鈥檚 company car and fuel benefit calculator.

You pay tax on the value of the benefit to you, which your employer works out.

Check your Income Tax to see how company benefits affect the tax you pay.

Medical insurance

You usually pay tax on the cost of the insurance premiums if your employer pays for your medical insurance.

Check how your employer works out how much tax to deduct from your pay.

You can get some tax-free health benefits from your employer, including:

• medical insurance when you鈥檙e working abroad
• annual check-ups

Check and report changes to medical insurance paid for by your employer.

Loans

You鈥檒l pay tax on low-interest or interest-free loans from your employer if they鈥檙e worth more than 拢10,000.

You pay tax on the difference between the interest rate you pay to your employer and the official rate of interest set by the Bank of England.

Check how your employer works out how much tax to deduct from your pay.

Living accommodation

If you (or one of your relatives) is living in accommodation provided by your employer you may pay tax.

How the tax is worked out depends on whether the accommodation cost more than 拢75,000.

Check how your employer works out how much tax to deduct from your pay.

You may not pay tax if you get the accommodation so you can do your job, or do your job better, for example agricultural workers living on farms.

Help with your Self Assessment

Use the living accommodation helpsheet if you need help with the 鈥楨mployment鈥� section of your Self Assessment tax return.

You can get some company benefits tax free, including:

• meals in a staff canteen
• hot drinks and water at work
• a mobile phone
• workplace parking

Christmas parties can also be tax free if they cost 拢150 or less per head and are open to all employees.

Your employer might provide tax free childcare support, including childcare vouchers.

You do not usually have to pay National Insurance on benefits you get from your job.

Your employer will pay National Insurance contributions on them instead.

But you do have to pay National Insurance on things that are paid in cash, as they鈥檙e treated as earnings.

For example, if your employer gives you a gift that you could sell instead of keep, you will pay National Insurance on the value of the gift.

At the end of each tax year, your employer will give you details of the company benefits they鈥檝e told HM Revenue and Customs (HMRC) about.

They might give you a copy of your P11D form, if they sent one to HMRC.

Tell HMRC about starting or stopping company benefits

You must tell HMRC about any benefits you or your family start or stop getting from work - even if your employer has already taken Income Tax and National Insurance for them.