Medical insurance and tax

howmuchdebt?

My employer introduced medical insurance as a benefit. I have never used the insurance but have now received a letter from HMRC informing me that I owe over £900 in tax because of this benefit. My employer has just included it on my P11 and HMRC are back dating what I owed over 3 years. I'm gutted that I'm now going to be out of pocket for something I've not used. Can I do anything?

Dazed_and_C0nfused

Check the benefit figure used by HMRC is correct (likely it is).

Other than that not much you can do to rewrite history.

But you could opt out of getting the benefit going forward if you don't think it is worth the tax cost.

lisyloo

You still have to pay for insurance even if you don’t use it.
you can’t claim money back if you don’t crash your car !

if you don’t want the insurance then opt out of the benefit, however they are usually very good value when you are only paying the tax.

Bossworld

Speak to your payroll department, surely you’re not the only one in this position if they’ve instigated an operational change?

I’ve seen a couple of schemes administered in different ways as an employee:

1) My tax code was adjusted down by ~£100 for a cash plan that allowed you to reclaim things like prescriptions, dental costs etc. Think that version appeared on P11d

2) Private medical insurance - around £70 a month is added to gross taxable income so you are paying tax on the benefit, but not being paid the equivalent in cash, if that makes sense.

littledog70

I would be a a bit worried that your company took 3 years before it submitted a p11d they should be doing one every year