Taxed on medical insurance

jimmydean1

Started paying more tax because of my company's medical insurance and immediately told them to take me off it. I updated my information on the HMRC gateway to advise that I no longer receive the benefit but I keep getting taxed on it every month. Will this be sorted next tax year in April and will I get a refund?

Dazed_and_C0nfused

jimmydean1 said:

Started paying more tax because of my company's medical insurance and immediately told them to take me off it. I updated my information on the HMRC gateway to advise that I no longer receive the benefit but I keep getting taxed on it every month. Will this be sorted next tax year in April and will I get a refund?

Why do you think you would due a refund?

If medical benefit has been provided by your employer in the current tax year then you will be taxed on it for the entire tax year, just like you would a company car you gave back part way through the tax year.

What might change though is the amount of the benefit.

What was declared on your P11D for the 2024-25 tax year?

Isthisforreal99

Most people would see private healthcare a definite perk these days. Perhaps a knee jerk reaction to paying a bit more tax?

poseidon1

jimmydean1 said:

Started paying more tax because of my company's medical insurance and immediately told them to take me off it. I updated my information on the HMRC gateway to advise that I no longer receive the benefit but I keep getting taxed on it every month. Will this be sorted next tax year in April and will I get a refund?

You may come to regret your hasty action when stuck in a long NHS queue for elective treatment, which you could have had quickly under your private medical cover.

I highly valued my benefit in kind medical cover during my working life, and miss it now thrown back on an overstretched NHS during retirement. 

Hopefully you have not similarly  cancelled any PHI which would pay a percentage of your salary to retirement age, if you ever became long term sick.

Uriziel

I would raise this with payroll if you believe you are being wrongfully taxed but this should solely impact your tax code as it will be deducted from your personal allowance. The way it works is that the company pays for the insurance but the tax is deducted from your personal allowance of that tax year. This is why you can usually only change this at the start of the tax year with your company. If you cancelled this on time you should be entitled to the little amount of tax that you paid in the first few months of the tax year but you should again ask payroll and not here.

Nobody here knows about your health but I would also advise for you to stay on the plan. Even if you are very healthy you cannot predict the future. There are always people that get sick randomly and need treatment and then you will be grateful for the private plan. When I needed a 24 hour ECG it took nearly a year and by then I did not need it anymore. What if I did actually need it? Most sickness and disease cannot be cured but can be prevented if you spot it in time.

Albermarle

A classic case of the Tax tail wagging the dog.

Give up a £1000 benefit ( or quite possibly more) to pay £200 less tax.......

Cobbler_tone

I pay the tax on £2,972 a year for health cover for me and my family. As I sacrifice 50% of my pay into my pension I am a 20% tax payer. i.e. it costs me £49.53 net per month.
I am having branch block injections next week (£3k as know someone who just self funded with the same consultant) and after two years of messing around with the NHS (and a crazy amount of painkillers) my OH explored multiple avenues (funding botox herself with helped for a while) and finally found her face/jaw pain is caused by a broken nose pushing on her sinus, which will now be operated on. In hindsight we should have accessed the private route sooner.
The sad thing with the latter is that the NHS would have NEVER established this and had ample opportunity to do a simple CT scan.

I suggest you look at the 'real' cost but appreciate if you are one of these people who haven't seen a GP in ten years (standard waiting time  ) it can be hard to see it as a benefit.