Tax coding question

poshrule_uk

Hi all, I have tried looking on the Internet but can't find the answer I'm looking for.

I have received my tax notice for this year which is 1090L (I'm a basic rate tax payers) and a 100 quid is deducted for medical insurance. My employer provides something called medicash but all this you can claim 60 quid a year back for dental work and hospital stays so it's strictly not private medical cover.

Anyway I spoke to a few people at work and they have the 1100L code (they still have the medicash) and reckon mine is wrong but I have always thought it was correct.

If it is correct it's cool would just like it correct if not

Thanks in advance

Caz3121

Sounds like it is being treated as a Benefit in Kind (you pay nothing yet you can receive a benefit)...you may have to speak to your employer or wait for your P11D to confirm
At this point you do not know whether it is yours that is incorrect or your colleagues

poshrule_uk

Exactly it could be mine or my colleagues is wrong, I'll wait and see or may ask payroll next week

Darksparkle

If this is something your employer is paying for on your behalf (so you are benefiting from it) then it would likely be a taxable benefit and your code would be correct.

jimmo

Looking at the Medicash website I would say that, for tax purposes, it is medical insurance if your employer is paying.
https://www.medicash.org/
For a basic rate taxpayer a £100 restriction in your coding means that you will pay an additional £20 a year in tax so even if you only have a dental check up twice a year, you will be slightly better off by being in the scheme but I would suggest you consider 2 things.
1) Check the benefits available to you. In a similar scheme I have claimed dental, optical, (private) consultancy fees and in-patient allowances and been grateful that I was able to do so.
2) Be very careful about who you ask about this at work.
In a large organisation payroll probably wouldn’t have a clue about this. HR might but a welfare officer really should.
Also, and very importantly, I think your tax code is correct and your colleagues’ codes are wrong but if you rock the boat, your tax remains the same but your colleagues’ tax goes up to the correct level, who do you think they will blame?

poshrule_uk

Thanks for the answer.

I presumed mine was correct and theirs is wrong, it's why I came here rather than to HR as I didn't want to cause a fuss over 20 quid.

I'll leave things as they are and 60 quid saving on dental costs more than settles this