Brief Medical Expenses

stoat

On joining a new company last year I was enrolled onto their private medical insurance scheme with BUPA, a few weeks later I got the paperwork saying it was going to cost £400/year, thinking this was how much I would have to pay, I cancelled the membership and as a result I was only in the scheme for a couple of weeks, maybe a month at the most.

A few weeks ago I got a tax code adjustment letter from the Inland Revenue, saying my tax code was going to be reduced by £400 to offset this medical insurance I barely had. I contacted them and they agreed it didn't seem fair, but only my company could sort it out, my company seems less than interested, so my question is, in this circumstance what should happen? Should my tax code be adjusted by the full £400, should it be divided by 12, zero or some other alternative?

Thanks!

fengirl_2

You need to find out from your employer whether or not they received a refund of the premium they paid when you cancelled. If they didn't, then the full £400 is taxable because thats what they paid on your behalf. If they received a refund, in part or in full, then they need to produce a p11d showing the net amount paid for you and HMRC will adjust your liability accordingly.