Benefit in kind is treated similarly to gross pay when it comes to income tax. A value has to be put on the benefit, and the Inland Revenue provides rules for most cases.

Benefit in Kind. This is called ‘List Priceâ€(tm) for tax purposes and includes VAT, the list price of any options including VAT and the manufacturerâ€(tm)s delivery charge on the day before the vehicle is registered. This figure is provided to the customer to assist them in their reporting to the tax office and is used to assess the amount of tax a driver will pay as a result of having a company car. Customers are advised to speak to their financial advisor/accountant if they have any queries.