Benefits in Kind not taxable

Medical Insurance is taxable but i understand there are companies providing this without tax

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My company provides healthcare to employees who wish to take it up. It is classed as a benefit in kind and included on our P11d. I recently came accross someone who started at a new company (large well known) who has a letter stating they are being given healthcare but this is not a taxable benefit so it will not have any affect on their tax code. How can this be? Is there a way a company can provide this so its not taxable? 

Replies (29)

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By Paul Crowley
04th Apr 2024 11:33

Yes
The company can choose to pay the tax
https://www.gov.uk/paye-settlement-agreements#:~:text=A%20PAYE%20Settlem...(%20PSA,or%20benefits%20for%20your%20employees.

Not sure that it was intended for this purpose though.

If I was that employee I would want to know the details.

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Replying to Paul Crowley:
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By SarahS2908
04th Apr 2024 12:29

yes not a minor expense though so the company shouldn't be doing that

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By David Ex
04th Apr 2024 11:38

Maybe they are working at a hospital.

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Replying to David Ex:
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By SarahS2908
04th Apr 2024 12:25

no its a normal business

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By More unearned luck
04th Apr 2024 11:49

The BIK is being 'payrolled'.

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By More unearned luck
04th Apr 2024 11:49

The BIK is being 'payrolled'.

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Replying to More unearned luck:
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By Paul Crowley
04th Apr 2024 11:59

If that is the case, then the letter is a bit misleading. Or more likely that the employee has not read it in full and did not figure out that he was paying tax on the benefit.
I have written to clients about the compulsory payrolling for the very few that have P11ds, but no response yet.
@OP
Have you actually seen the letter stating that the cover is not a taxable benefit?

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Replying to Paul Crowley:
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By SarahS2908
04th Apr 2024 12:27

i agree if its payrolled then you are still being taxed. I dont have a copy but am going to ask for more details to see if it is their interpretation

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Replying to More unearned luck:
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By SarahS2908
04th Apr 2024 12:28

thats still taxed though

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Replying to SarahS2908:
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By More unearned luck
04th Apr 2024 13:03

"thats [sic] still taxed though"

I never said it wasn't. You shouldn't be so credulous.

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Replying to More unearned luck:
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By SarahS2908
04th Apr 2024 13:53

what do you mean by that? I have been told by someone credible and im asking for the info so i can determine why they think that. You seem to be assuming that i have been deceived

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Replying to SarahS2908:
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By Leywood
04th Apr 2024 14:05

Being told by someone credible doesn’t make it true, nor provide the full facts needed to make an assessment.

Especially if that person is clueless when it comes to all the tax possibilities.

Sounds like the MDtP syndrome.

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Replying to Leywood:
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By SarahS2908
04th Apr 2024 14:26

I did not say it made it true, i was replying to the comment about me being credulous.

I only asked a question in case anyone knew of a reason why this may be possible.

I am trying to get the info to see exactly what the wording is

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Replying to SarahS2908:
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By Leywood
04th Apr 2024 14:32

SarahS2908 wrote:

I am trying to get the info to see exactly what the wording is

Maybe should've done that before asking

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Replying to SarahS2908:
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By Paul Crowley
04th Apr 2024 14:24

Is that really the way to win friends and influence people?

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Replying to Paul Crowley:
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By SarahS2908
04th Apr 2024 14:33

sorry i dont understand what i have said that is wrong? i was just asking a question on here

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Replying to SarahS2908:
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By paulwakefield1
04th Apr 2024 14:42

If it's any consolation, I'm mystified as well as to what you said to offend.

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Replying to SarahS2908:
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By More unearned luck
04th Apr 2024 15:02

I didn't assumed that you were deceived - I had no reason to believe that your friend set out to misled you (I assumed that you were told what you were told today and not on Monday morning) - I was accusing you of being too ready to believe the unlikely.

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Replying to More unearned luck:
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By SarahS2908
04th Apr 2024 15:18

ok, i dont believe what ive been told thats the reason for me coming here to find out if there is something im not aware of. If it is true then I thought that maybe there is some loophole that i dont know about. e.g. if they offered it to every employee or included specific terms or cover etc but i still cant see how that would be possible.
As its a large well known company I assumed they would have advisors.
Im trying to get hold of the actual wording so i can check for myself that their understanding is correct

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Replying to SarahS2908:
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By paulwakefield1
04th Apr 2024 15:26

You didn't come on here to get an answer to a question, did you?

Oh dear, oh dear, oh dear.

:-)

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Danny Kent
By Viciuno
04th Apr 2024 12:15

Was this "someone" talking about life insurance rather than medical insurance?

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Replying to Viciuno:
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By SarahS2908
04th Apr 2024 12:26

no definitely medical as it was BUPA coverage

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By SteveHa
04th Apr 2024 15:36

Possibly £500 tax-free where it is designed to get someone back to work more quickly?

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Replying to SteveHa:
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By SarahS2908
05th Apr 2024 13:05

I was told it was Annual BUPA Health plan so would be more that £500

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By petercooperuk
05th Apr 2024 12:46

"Healthcare" is a bit of a vague description. Could it be something like an annual medical or health check, rather than a full healthcare plan? Annual medicals for employees have no BIK consequences (usually).

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Replying to petercooperuk:
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By SarahS2908
05th Apr 2024 13:04

I was told it was BUPA Health plan. Im trying to get the exact wording as i cant see how its possible

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Replying to SarahS2908:
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By FactChecker
05th Apr 2024 14:26

Presume that their employer isn't BUPA itself?

Otherwise I too will be fascinated to see the exact wording.

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Replying to FactChecker:
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By Paul Crowley
05th Apr 2024 15:39

I suspect that the person that read the letter has misremembered, or more likely extrapolated from the first two lines of a 6 paragraph letter.
I have enough problems with clients trying to tell me what it is that the lender/letting agent/education/bank/pension planner etc wanted, because what they are saying is clearly rubbish or so vague as likely to be wrong.
Why do those prats use the telephone, and not use an email?
Last two? So you are ok that the client still has not provided us with records for the last year end? Thought not. Tell your client which years you want.

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Replying to Paul Crowley:
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By FactChecker
05th Apr 2024 17:01

Not unusually, our suspicions are similar.
It's sad that not so many years ago you (or at least certainly I) were frequently told to stop being so cynical, and yet now that typically takes one straight to the truth.

I assume your final sentence was directed at OP?

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