Private Healthcare Benefit In Kind

Private Healthcare Benefit In Kind

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Director of a limited company wants to start up a company scheme for private healthcare (with Axa PPP) that also covers his family. He is a higher rate taxpayer and his wife is also an employee of the limited company earning a small salary.

He has suggested that he sets up the company scheme with his wife as the named employee on the policy with her family (including himself) named as separate dependants on the policy.

There is obviously a taxable private healthcare benefit arising here but will this P11d benefit be taxable on his wife?

Replies (4)

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By andy.partridge
20th Aug 2014 17:05

Starting point

Would the individual be granted the benefit if she were not the director's wife? Almost certainly not. I would suggest that the starting point is that it is taxable on the director and go from there.

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By Steve Kesby
20th Aug 2014 17:08

HMRC agree with Andy

See EIM20505 and EIM20506, as well as EIM20500 generally.

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Euan's picture
By Euan MacLennan
20th Aug 2014 17:15

So ...

... make the wife a director and split the benefit 50:50 between them - it is better than 100% for the husband.

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Replying to johnt27:
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By andy.partridge
21st Aug 2014 09:25

Maybe not

Euan MacLennan wrote:

... make the wife a director and split the benefit 50:50 between them - it is better than 100% for the husband.


The wife just might choose to take her directorial responsibilities seriously.
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