# Tax on Benifit in Kind (Health Insurance)



## Delboy_Trotter (Jun 7, 2007)

Hi All

Came into work this morning to an e-mail from HR offering 'free' corporately funded BUPA healthcare....

Not bad you may think, but i then rad the paperwork and realized that it wont be completely free and the tax man will want to chew my rear!

So my question is what is the likely bill? The paperwork says its cooperatively funded to the tune of £22.79 a month.

Before i sign up i want to weigh the options and see if i can afford it, im trying to save a deposit for my first place so ive already been trimming my expenses to the bone - now potentially ill have a few £ less in my pocket at the end of the month ill need to re-budget if i take it 

The other thing that sways me against is the fact that only i get cover - if the Mrs wants in I have to pay £22.79 and get taxed!

If someone could put the numbers in English it would help so i can work out if its worth it!


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## Philb1965 (Jun 29, 2010)

£22.79 x 12 then it's 20% or 40% depending on your tax bracket.

Roughly £55 a year or £110 a year tax liability.

It's a disgrace you have to pay anything when you are taking some of the burden off of the NHS. I don't use my companies for that reason but it's good if you ever need it.

Seems very cheap to be honest, ours is around £900 a year!!!


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## Beancounter (Aug 31, 2006)

As Phill above has said, depending on your tax bracket, it's the £22.79 x 12 months = £273.48 (taxable Benefit - the amount that will be shown as a BiK on your P11D)

As also said, seems very cheap, for the sake of less that £5 or £10 a month I'd take it up.


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## Clkrichard (Nov 17, 2011)

Thats good value - go for it and add your wife too. You never know and the private treatment I am now getting for cancer is a million times more comfortable than the NHS version.


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## Hasan1 (Jul 1, 2011)

Look at the small print I think you would still need to pay £100 every first time you need to see a consultant


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## Clkrichard (Nov 17, 2011)

A normal excess is £100 per claim not every consultant visit. You therefore pay £100 per policy year for each individual course of treatment not for each consultation for the same problem.


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## Coops (Apr 26, 2008)

Does seem very cheap and based on the BiK I would sign up. 

My scheme has an excess of £50 per person per year (I have a full family policy) -this means that even if I have 2 treatments I only pay the excess once.


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## majcas84 (Aug 24, 2012)

As previously said by others, check any excess you might have to pay. Our old scheme meant I had to pay the first £400.00 of any claims each year.

If your scheme's excess is too high for you, then no point in paying the tax. But if not sign-up it sounds like a great deal and very cheap.

Sorry to say it but anything you can do to avoid the NHS is worth doing.


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## S63 (Jan 5, 2007)

Hasan1 said:


> Look at the small print.


working for PPP Healthcare for a few years I soon discovered that in this industry more than most, the small print (and lots of it) is vitally important to read.


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## BJG (Feb 8, 2013)

Have a very similar scheme where I work and it is a small price to pay having just gone through major surgery on the NHS because the illness being treated was a pre-existing condition!

Get it ASAP as you never know what lurks around the corner.

I pay for the Mrs and at £25 a month is, I feel, very good value. The cat costs almost as much to insure each month and I know which of the two brings in a wage!


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