Benefit-in-kind (BIK) changes during COVID-19 restrictions

Seasonal parties

Benefit-in-kind (BIK) charge did not arise where you incurred reasonable costs in hosting a virtual seasonal party for your employees. Reasonable costs included costs typically incurred in hosting a face-to-face event. This included the cost of delivering or providing food and drink to your employees in advance of or during the event.

Vouchers provided to your employees to purchase food or drink for the event were not included. Such vouchers were taxable unless they were covered by the Small Benefit Exemption.

The event must have been open to all employees.

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