What is a Benefit-in-Kind (BiK)?
When you receive a benefit through your employer, it may be considered a Benefit-in-Kind (BiK) – meaning it has a taxable value in HMRC's eyes. Rather than paying that tax as a lump sum upfront, it's collected gradually through your payroll, so the impact on your take-home pay is spread over time.
How this works for Home and Electronics
With Home and Electronics, the taxable value is created at the point your order is placed and spread across the remainder of the tax year. You won't pay anything upfront – the tax is deducted from your salary in regular monthly instalments. This approach is in line with HMRC's move towards real-time tax collection through payroll.
What you'll see in your account
In your My Account → Orders, you can view a full breakdown of how your benefit affects your pay, including:
Your estimated total tax amount
Your monthly repayment amount
The number of months payments will run for
When deductions are expected to happen
This means you'll always have a clear picture of what to expect on your payslip.
FAQs
Are these amounts exact?
Are these amounts exact?
The figures shown in your account are estimates. Your actual tax may vary depending on your salary, your tax code, and any changes in your circumstances during the tax year. Your employer's payroll team will calculate the final amount, so if you have questions about your specific deductions, they're the best people to ask.
When will I pay the tax?
When will I pay the tax?
Tax is usually deducted monthly through your payroll, starting shortly after your order is processed. You'll see this reflected directly on your payslip each month.
What if the full tax can't be taken from my salary?
What if the full tax can't be taken from my salary?
Under PAYE rules, there's a limit on how much tax can be deducted in any single pay period – deductions can't exceed 50% of your gross pay. If that limit is reached in a given month, some tax may be carried forward and collected later in the tax year instead. You don't need to take any action, as this is handled automatically through payroll.
Why is this changing?
Why is this changing?
From April 2027, the UK government is making the payrolling of Benefits-in-Kind mandatory. This is part of HMRC's wider modernisation of the tax system, shifting from year-end reporting to collecting tax in real time. For you as an employee, it means greater visibility of how your benefits affect your pay throughout the year – and fewer end-of-year surprises or tax code adjustments.
Where can I see more details?
Where can I see more details?
You can always check your My Account for a full breakdown of your order, your tax schedule, and your payment progress. Everything you need to understand your benefit and its tax impact is in one place.
Still have questions?
If you're unsure about how this affects you personally, your HR or payroll team will be able to help.