We have a small group policy health insurance paid by our company and the BIK is split amongst the named Employees according to the insurance premiums shedule within that policy.
Lets say we have one older person (70) and one younger person (52) in that policy.
The premiums for the older person are more expensive for the younger person. Presently ~ 150 / 350 pcm.
Now the younger person is having a major cancer claim. And the group policy health insurance renewal reflects that by increasing the premiums across the whole group (this year by 55%) so the older person will now be paying tax on ~£550 pcm. Double that as this employee is married. How very embarrassing for the claimant who will be paying tax on ~£232.00 pcm per person. Also married and doubled.
Notwithstanding discussing the morals of this type of insurance policy (in play 20 years) my question is can the employees split the BIK between them in a fairer way or even a 50/50 split so the tax implications are fairer in this or in any case?