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Overview
This article outlines the benefit types and associated event treatments currently supported within the BIK module for payrolling benefits. It explains how each HMRC benefits liability is processed in the system, including whether tax and National Insurance liabilities are payrolled, applied immediately, or reported via P11D(b), and where user selection of an Event Type is required.
For each supported benefit, the table below shows the available Event Types, the resulting tax treatment, and the applicable NIC class. Some benefit types are automatically handled, meaning there is a single, predefined treatment route and no event selection is required. Others support multiple Event Types, where the tax and NIC outcome depends on how the benefit is provided or paid for.
This article also highlights benefits that are record-only or not yet handled, reflecting the current position on National Insurance processing and planned future support. The expanded 'Other' benefit category is included to provide flexibility where benefits do not fit standard HMRC classifications but still require specific tax or NIC handling.
Please review this article carefully, as terms such as 'Immediate' and 'Payrolled' have specific system and payroll implications that directly affect how and when liabilities are applied.
For more information on Income Tax and National Insurance processing, including Fourth's current position, then please read the National Insurance and Income Tax Handling for Payrolled Benefits article.
Supported Benefits & Event Types
- For Tax & NIC Liability, 'Immediate' indicates that the full value of the benefit will be applied, in full, in the next available payroll run, rather than being spread across the tax year (as with 'Payrolled') or processed via a P11D(b) for Class 1A NIC
- For Event Types, 'Automatically Handled' means that the benefit type has a single treatment route and therefore does not require the selection of an Event Type
- In the table below, select the link for each HMRC Benefit Type to review the applicable legislation, understand how the benefit value is calculated, and see the specific configuration and application approach within the BIK module. Some benefit types have prerequisites or mandatory configuration settings.
Please note: The 'Other' benefit type category has been expanded to allow flexibility on different tax and NIC liability requirements.
|
HMRC Benefit Type (Articles Linked) |
Event Type | Tax Liability | NIC Liability |
| Assets Transferred (Cars, Property, Goods) | Selling or giving away an asset to an employee | Payrolled | Class 1A NIC (P11D(b)) |
| Buying an asset from an employee | Immediate | Class 1 NIC (Immediate) | |
| Payments made on behalf of employee | Employer arranges the goods or services and pay the supplier directly | Payrolled | Class 1A NIC (P11D(b)) |
| The employee arranges the goods or services, but employer pays the supplier directly | Payrolled | Class 1 NIC (Immediate) | |
| The employee arranges and pays the supplier, but employer reimburses them | Immediate | Class 1 NIC (Immediate) | |
| Vouchers | Vouchers exchangeable for cash | Immediate | Class 1 NIC (Immediate) |
| Vouchers exchangeable for goods and services only (non-cash vouchers) | Payrolled | Class 1 NIC (Immediate) | |
| Credit, Debit and Charge Cards | The card is used on the employer’s behalf but without permission | Payrolled | Class 1 NIC (Immediate) |
| The card is used for business purchases but not clearly on behalf of the employer | None | None | |
| The card is used for private purchases but not clearly on behalf of the employer | Payrolled | Class 1 NIC (Immediate) | |
| Living Accommodation | Record Only - Not Handled until 2027. | None (Until April 2027) | None (Until April 2027) |
| Mileage allowance payments not taxed at source | Use of own vehicle | Payrolled | Class 1 NIC (Immediate) |
| Passenger payments | Payrolled | Class 1 NIC (Immediate) | |
| Company Cars & Car Fuel | Automatically handled | Payrolled | Class 1A NIC (P11D(b)) |
| Company Vans & Van Fuel | Automatically handled | Payrolled | Class 1A NIC (P11D(b)) |
| Interest-free and low interest loans | Record only - not handled until 2027 | None (Until April 2027) | None (Until April 2027) |
| Private medical treatment or insurance | You arrange and pay the provider directly for treatment or insurance | Payrolled | Class 1A NIC (P11D(b)) |
| Your employee arranges treatment or insurance, but you pay the provider | Payrolled | Class 1 NIC (Immediate) | |
| You reimburse your employee’s costs | Immediate | Class 1 NIC (Immediate) | |
| Qualifying relocation expenses payments and benefits | Automatically handled | Payrolled | Class 1A NIC (P11D(b)) |
| Services Supplied | Automatically handled | Payrolled | Class 1A NIC (P11D(b)) |
| Assets placed at the employee’s disposal | Automatically handled | Payrolled | Class 1A NIC (P11D(b)) |
| Other items | Other subject to Income Tax (Payrolled) and Class 1A NIC | Payrolled | Class 1A NIC (P11D(b)) |
| Other subject to Income Tax (Payrolled) and Class 1 NIC | Payrolled | Class 1 NIC (Immediate) | |
| Other subject to Income Tax (Payrolled) but not NIC | Payrolled | None | |
| Other subject to Income Tax (Immediate) and Class 1A NIC | Immediate | Class 1A NIC (P11D(b)) | |
| Other subject to Income Tax (Immediate) and Class 1 NIC | Immediate | Class 1 NIC (Immediate) | |
| Other subject to Income Tax (Immediate) but not NIC | Immediate | None | |
| Other subject to Class 1A NIC, but not Income Tax | None | Class 1A NIC (P11D(b)) | |
| Other subject to Class 1 NIC but not Income Tax | None | Class 1 NIC (Immediate) | |
| Other (record only - No Tax and No NIC) | None | None | |
| Expenses payments made on behalf of the employee | Non-business entertainment – employer arranges and pays | Payrolled | Class 1A NIC (P11D(b)) |
| Non-business entertainment – employee arranges, employer pays | Payrolled | Class 1 NIC (Immediate) | |
| Non-business entertainment – employee arranges and pays, employer reimburses | Immediate | Class 1 NIC (Immediate) | |
| Private Travel - employer arranges and pays | Payrolled | Class 1A NIC (P11D(b)) | |
| Private Travel - employee arranges and employers pay supplier directly | Payrolled | Class 1 NIC (Immediate) | |
| Private Travel - employee arranges and pays, employer reimburses | Immediate | Class 1 NIC (Immediate) | |
| Business Travel - Reimbursed more than the necessary cost | Immediate | Class 1 NIC (Immediate) | |
| Non-Qualifying Relocation - employer arranges and pays | Payrolled | Class 1A NIC (P11D(b)) | |
| Non-Qualifying Relocation - employee arranges and employers pays supplier directly | Payrolled | Class 1 NIC (Immediate) | |
| Non-Qualifying Relocation - employee arranges and pays, employer reimburses | Immediate | Class 1 NIC (Immediate) |
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