Tax credit with private Medical Insurance

mixedupnumbers

hi,

Just checked the renewal letter today for my tax credit renewal and the documentation that came with the income done automatically from my employer. This now states my annual income and a benefit in kind for private medical insurance. These seems to have been added together as my annual wage and calculated into what i will now receive in tax credits.

I dont get this money in cash (just pay tax on the quoted benefit in kind).
I have contacted the tax credits and they dont seem to be sure if it should or not be calculated together at first but eventually say it is taken into account, maybe to cover themselves maybe not but im not convinced.
I am already paying tax on it so dont see a reason why they should be taxing me on it again albeit a different way.

Has anyone else had any experience with PMI and claiming credits. Forgot to mention that the amount is now taken from source so it shows on my p60 as my actual wage when it isnt the case.

Regards

princessdon

If it's taxable it's included like other benefits in kind on your p11d are.

lorelai34

Blondebubbles is correct. It should not be taken into account. Phone back and ask them to check the guidance.

zagfles

mixedupnumbers wrote: »

hi,

Just checked the renewal letter today for my tax credit renewal and the documentation that came with the income done automatically from my employer. This now states my annual income and a benefit in kind for private medical insurance. These seems to have been added together as my annual wage and calculated into what i will now receive in tax credits.

I dont get this money in cash (just pay tax on the quoted benefit in kind).
I have contacted the tax credits and they dont seem to be sure if it should or not be calculated together at first but eventually say it is taken into account, maybe to cover themselves maybe not but im not convinced.
I am already paying tax on it so dont see a reason why they should be taxing me on it again albeit a different way.

Has anyone else had any experience with PMI and claiming credits. Forgot to mention that the amount is now taken from source so it shows on my p60 as my actual wage when it isnt the case.

Regards

Well really the PMI should be deducted from your P60 income not added to it! Are you sure they haven't done this? But where BIK's are payrolled things can get complicated...

mixedupnumbers

Thanks for the replies. yes the P60 has had the insurance added to the wage it so it can be taxed at source. Seems to benefit the company doing it this way but a pain for me now. The positive is that it can be identifed from the wage on the way they now gather the information by breaking it down to wage and BIK. My employer has advised to take it off the amount as its nothing to do with the and shouldnt be in the calculation. Yes im 99% sure that they have done it this way as they seem to be taking about haf the amount of the tax credit from me of the insurance amount. looks like im going to have to quote TCM0322175 if the decide that they are taking into account and see what they say. Just waiting for a call back from CAB before going in for the kill.

Thanks again everyone.

mixedupnumbers

Hi,

Just a quick update on this for anyone else in the same situation. I had been advised by the citzens advice that it should not go into the calculation and removed from the amount put on the declaration form which i have now done.

They have adjusted my payments back to what they should be so all is fine.

Thats for the help again all. Until the next problem Bye.............................................................