Which of the following is NOT a benefit in kind (BIK) for income tax purposes for the employee concerned?

• A. An employer contribution to the employee's PRSA
• B. The provision of a company car
• C. Payment by the employer of the employee's medical insurance premium
• D. An employer contribution to the employer's pension scheme for the employee.

Answer: (C)

A benefit in kind is a non-cash perk provided by the employer that has monetary value and is typically taxable to the employee. The most common examples are a company car or pension-related contributions, which are treated as part of the employee’s remuneration for tax purposes.

The employer paying the employee’s private medical insurance premium is not treated as a benefit in kind for income tax purposes. This payment is considered a business expense for the employer and does not add to the employee’s taxable income, so it does not create a BIK.

In contrast, providing a company car is a tangible personal benefit with a clear monetary value added to the employee’s compensation, and employer contributions to a PRSA or to a pension scheme are also treated as benefits that can be taxed as BIK or have related pension tax implications.