How Perkbox products are typically treated for tax purposes (UK)

This article provides general, high-level information on how Perkbox products are typically treated for UK tax purposes.

​Perkbox does not provide tax, legal or financial advice. The tax treatment of any benefit depends on an employer’s specific circumstances and how a product is used. Employers should always refer to HMRC guidance or seek advice from a qualified tax adviser.

Benefits in Kind (BiKs) are non-cash benefits provided by an employer because of an individual’s employment. They are usually taxable, and most give rise to NIC liabilities. From 6 April 2027, HMRC will require most BiKs to be reported and taxed via payroll in real time (“mandatory payrolling”) instead of the traditional year-end P11D process (with certain limited exceptions, such as loans and living accommodation, which will initially remain outside the mandatory scope). Until then, employers can choose to payroll benefits voluntarily.

Where an employer pays for a Perkbox subscription, the benefit provided is access to the Perkbox platform. Employees may then choose to use the platform to access discounts, offers or services that they pay for themselves. In these cases, the benefit is not the individual product or service, but the platform access funded by the employer. Employers are responsible for determining how this access should be reported to HMRC (e.g., via payrolling of benefits where used, or alternative routes pending the 2027 change).

Recognition activity that does not involve a monetary award (for example, peer recognition messages or posts) is not typically treated as a taxable benefit. (Employers should confirm there is genuinely no monetary value or exchangeable benefit.)

Where an employer provides a reward with a clear monetary value (such as gift cards, vouchers or Wallet top-ups), the value of that reward is typically taxable and liable to Class 1 NIC (employee and employer) under HMRC’s voucher/credit-token rules, unless a specific exemption applies.

The Perkbox Wallet itself does not have an inherent monetary value. However, where an employer funds or tops up an employee’s Wallet for employment-related reasons, the value provided by the employer is typically treated as taxable and subject to Class 1 NIC (in addition to any Class 1A NIC where relevant), unless an exemption applies. Employers should apply HMRC’s rules for vouchers and credit tokens.

Some employers ask whether Perkbox can be structured to fall within the £50 trivial benefits exemption. Perkbox access and employer-funded rewards are not automatically covered by this exemption. Whether it applies depends on HMRC’s criteria, including whether there is a contractual entitlement or an expectation that the benefit is provided as part of employment, and whether the item is a cash voucher (which is excluded). Employers should seek independent advice before relying on any exemption.

Some Perkbox products are offered through salary sacrifice arrangements, such as Cycle to Work and Home & Electronics. For these products:

Perkbox designs salary sacrifice products to align with HMRC requirements. However, employers remain responsible for ensuring correct setup, payroll operation, and ongoing compliance.

Employers are responsible for determining how Perkbox-related benefits are reported to HMRC. Depending on the arrangement and timing, this may include:

Employers should follow HMRC guidance when deciding the appropriate reporting approach and get ready for the 2027 change to real-time reporting and payment of Income Tax and Class 1A NIC via RTI.

Where employers use multiple Perkbox features, any internal allocation of costs should be made on a fair and reasonable basis, supported by appropriate rationale. HMRC may expect employers to be able to explain how costs have been allocated if queried. (This supports transparency and readiness for real-time reporting.)

This article is provided for general information only and should not be relied upon as tax advice. Perkbox does not determine or guarantee the tax treatment of any benefit. Employers should consult HMRC guidance or a qualified tax adviser for advice specific to their circumstances.