Paying tax on benifit that wasn't active.

Mr_Reeman

I received free private healthcare from my employee. Earlier this year, in May, I added my wife to my policy and started to have around £18 a month taken out of my pay cheque to pay for the taxable benefit of now having her on the policy. In September the healthcare company sent me my annual statement and it turns out my wife was never added onto the policy due to their mistake. They have now corrected this and, as indicated on a revised membership statement, she was added in October of this year. This means I was paying for five months worth of payments which I shouldn’t have been. Am I able to claim this money back from the IR and how would I go about doing this?

Many thanks.

zygurat789

Mr_Reeman wrote: »

I received free private healthcare from my employee. Earlier this year, in May, I added my wife to my policy and started to have around £18 a month taken out of my pay cheque to pay for the taxable benefit of now having her on the policy. In September the healthcare company sent me my annual statement and it turns out my wife was never added onto the policy due to their mistake. They have now corrected this and, as indicated on a revised membership statement, she was added in October of this year. This means I was paying for five months worth of payments which I shouldn’t have been. Am I able to claim this money back from the IR and how would I go about doing this?

Many thanks.

Err no, why should HMRC pay you money you paid to your employer to pay an insurance company for a non-taxable item?

somethingcorporate

It should come back from your employer if anyone.

patanne

Are you saying that your tax code was amended to take into account a benefit in kind from May in this financial year when in actual fact the benefit in kind was only from October? If so then you should get some of the tax back already paid. They may prefer to make the adjustment to next years code when they (and you) will have the P11D as proof of the actual figure. Have you checked that your employer has not actually already paid the healthcare co for this, as if they have they, then they should get it refunded. Unless they do the P11D will be incorrect (although correct from your employers point of view).

CLAPTON

confusing

you should be paying tax on your free benefit in kind (the medical insurance) so your taxcode should be reduced


if you are paying in full for your wife to be added, then this isn't a BIK as you are paying.

If you paid your company but they didn't pay the insurance company then that's between you and your company

Mr_Reeman

Sorry, I've made a massive mistake and got confused! Yes, the payments I make are purely to pay for the healthcare which is chargeable for my wife. So the money comes out of my pay and goes to the healthcare company! Silly me! For some reason I thought it was just another tax!

I'll have a chat with HR and see what they say!

Thanks for turning the light on in my brain!