Tax / Benefit in Kind for Saturday job

[clarrylove]

My son (16) has just started a part time job, approx 4 hours a week with maybe some overtime. He is entitled to free private health care as a Benefit in Kind. My understanding is that, as he is not paying tax as under the Personal Allowance by a long shot (income approx 3k per year), he won't have to pay tax on the BIK either. Is that correct?

If it's going to be taxable I think he will need to turn it down as it won't be financially viable for him.

You’re right that he won’t pay tax on the value of the BIK if his gross salary + the BIK cash value is under his personal tax allowance.

One of the benefits of part time jobs for kids is that they start to understand these things themselves, so I recommend that you guide him in doing his own research.

This calculator is easy, though you need to know the BIK cash value. I can tell you though on £3K salary, he will be well under! I’ve just checked my P11D for you, and mine is £1300 for a very comprehensive work scheme for a family of 3. My company may have a better deal than Costa, but it’ll give you a ballpark figure.

www.uktaxcalculators.co.uk/tax-guides/personal-tax/benefit-in-kind-tax-calculator/

Thank you very much indeed! That was his own understanding and mine too but a friend told us that BIKs were taxed separately to income so we were confused as couldn't find anything to support that theory.