Question asked:


Hi Alan
Are there any expenses which if paid for by a company are not allowed to be treated under normal BIK rules for a proprietary director and the amount paid must be grossed up? eg if a company pays the director’s life insurance / income continuance / private house insurance / electricity bill etc is this payment treated the same way as a medical insurance payment would be for BIK?
Thank you

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Posted by (Questions: 3, Answers: 0)
Asked on 2 January 2019 11:15 am
Private answer
BIK (s 118) applies as if it is "emoluments" (s 112). The company gets a deduction for the "emoluments" paid and the employee pays tax on the BIK through the payroll. Cash is grossed up.
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Posted by (Questions: 5, Answers: 4874)
Answered on 2 February 2019 9:14 pm