Company Medical Insurance Tax Liability Question

elskie87

Hi

I have a question regarding how much tax I should be paying on my company health insurance.

Between august 2010 and august 2011 I was employed by a company that offered health insurance, I took this up for about 7 months of my employment then left for another company that did not offer the benefit.

However while I realise I am liable for the tax on the medical insurance which should only be 20% as I’m a basic rate payer. According to HRMC between the 2010-11 tax years I had medical insurance payments of £154 and in 2011-12 medical insurance payments of £379. In total it has cost me £533 in tax. Surly the employer is not paying out over £2500 for 7 months of medical insurance???

Could some out please tell me where I am going wrong with this???
Thanks,

Matt

pjclar02

Matt - is the £533 not the cost of the medical insurance to the employer, and you are paying tax on the £533?

elskie87

Hi,

I have had another look through all this and I see the problem.