Taxable benefit of PMI cover?

qprfact

My employer pays for PMI for myself and my family. I've had a look on HMRC's website, but can't find any specific forms about PMI, so my questions are:

1. I presume I'm taxed as a benefit in kind, but how is this calculated? (A percentage of the premium perhaps?)
2. Does the "family" element get taxed too, or just mine?

Thanks!

Bean_Counter

qprfact wrote: »

My employer pays for PMI for myself and my family. I've had a look on HMRC's website, but can't find any specific forms about PMI, so my questions are:

1. I presume I'm taxed as a benefit in kind, but how is this calculated? (A percentage of the premium perhaps?)
2. Does the "family" element get taxed too, or just mine?

Thanks!

1. The taxable benefit is the cost to the company. Hence the cost to you in real terms is either 22% or 40% of the cost to the company.

2. Family element will get taxed too.

silvercar

The cost to the company will be included in your P11D (statement of benefits) that your company will give you each year. The total amount of benefit will need to be included in your tax return.

Once the Inland Revenue is aware of you receiving this benefit they will adjust your tax code accordingly, so you will then pay the tax under PAYE.

The good news is that company costs of PMI are loads cheaper than the costs of you providing it for yourself and family, so the tax penalty is not as painful as it could be.

kennyboy66_2

silvercar wrote: »

The good news is that company costs of PMI are loads cheaper than the costs of you providing it for yourself and family, so the tax penalty is not as painful as it could be.

I think this really depends on how old you are, your health and your companies workforce profile.