Third party benefits

Your employee may receive a benefit from a third party in connection with their employment with you. In general, these are taxed as benefits in kind. The third party who provided the benefit is responsible for accounting for the following on the benefit:

Typical taxable third party benefits are:

  • cash
  • perks
  • the use of cars and vans.

Other third party benefits

Other third party benefits are also generally taxable. These will not be taxed as a benefit in kind if all of the following apply:

  • The third party provider of the benefit is not connected to you, either directly or indirectly, in any way.
  • There is no arrangement or scheme in place between the third party provider and you, or anyone connected with you.
  • You have not paid any amount, either directly or indirectly towards the benefit.