If you’re a business owner or director, you’ve probably heard the term Benefits in Kind (BIKs) thrown around—often alongside P11Ds, payroll submissions, and HMRC deadlines. But what exactly are they, how do they affect tax, and what changes are coming in April 2027 that every employer needs to know? This guide breaks it down simply, so you can stay compliant and avoid unexpected tax bills. What Are Benefits in Kind? Benefits in Kind are non‑cash perks that an employer provide

Running a limited company gives you flexibility, control, and powerful tax‑planning opportunities — but it also comes with one recurring question: “How should I pay myself?” For sole directors, this question is even more important because you decide the balance between salary, dividends, pensions, and other benefits. From April 2026, several tax rules have shifted, including higher dividend tax rates, meaning the old “salary + dividends” advice circulating online may no longe

Payments on account are HMRC’s way of collecting Income Tax and Class 4 National Insurance in advance. They apply to most sole traders and landlords who file Self Assessment but still remain unclear to most and often challenging for those submitting their first tax return. Here’s how they work: When do they apply? You’ll have to make payments on account if both are true: - Your last Self Assessment tax bill was over £1,000 - Less than 80% of your tax was collected at source,