Tax on Private Health Care?

joeyjoejnr

Hi,

Running through my previous pay slips I noticed that at the start of the current tax year my code changed from 647L to 408T. I also was paying an extra £40 a month on tax.

When I rang up to enquire about this they said it was something to do with my private health care benefits (I get Bupa coverage with my job). I need to find out how much the cover is for and how much of a premium the company pays. I check my pay slip and it costs around £70 a month (paid for by my employer). Does anyone know if I am required to pay tax on this?

Chinkle

Yes, you should pay tax on it, as its a personal benefit to you. The amount you pay will depend on whether you are a high rate tax payer or not. £40 extra tax sounds a bit high though, do you receive any other employee benefits too that you may be taxed on?

CLAPTON

if the benefit is 70 per month then that's 840 per annum; so your tax code should reduce by that amount i.e to 563L
do you have any other Benefits... what does your P11D say

joeyjoejnr

I'll need to hoke out my P11D form and check it out.

Is it likely I'll have to pay back taxes on this? I'd rather opt out of the private health care than have to pay tax on it!

Mikeyorks

joeyjoejnr wrote: »

Is it likely I'll have to pay back taxes on this? I'd rather opt out of the private health care than have to pay tax on it!

The tax tends to be paid in arrears .... as HMRC aren't normally advised of the P11D benefit until the year end.

But if your earned income is less than £43875 then you're only paying 20% tax on the benefit. So if it's £840 of benefit then you're only contributing £168. Most people would consider that worthwhile .... in the light of delays in the NHS?

thenudeone

Mikeyorks wrote: »

The tax tends to be paid in arrears .... as HMRC aren't normally advised of the P11D benefit until the year end.

But once they know you have a benefit like this they will change your tax code so that you shouldn't have a nasty surprise later.