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Hi "Bigduckontax" and thank you for your reply, however I am still not clear on whether my benefits are taxable. It certainly doesnt ft under any of the benefits you describe as it is a long term disability insurance provided by my employer. I am aware that in some cases they are taxable and in some cases they are not. How can I find out if it is?
Yes, that is a problem. You could check with the insurer which I feel would be the safest or inquire of your employer or even consult your tax office. If it is taxable and paid through PAYE then there is no problem as the correct deductions will be made. If it is not taxable then, as I told you, you should ensure that your employer pays them outside the PAYE envelope or you will have to wait until the end of the tax year to achieve the appropriate refund of over deducted tax.