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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3945
Experience:  FCCA FCMA CGMA ACIS
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I am currently on a Health Care Programme which is paid by

Customer Question

I am currently on a Health Care Programme which is paid by my Employers, SCS GRoup. They pay £7046 for both me and my wife. I am subsequently then had my tax code changed to K1803 for the current year , so I then pay £431.15 a week, which incorporates a benefit in kind charge. I would appreciate you looking into this serious charge, as I am now withdrawing from this programme. This is now a matter of urgency. It would appear that I am paying 40% tax on everything earned such as above. James xxxxxxxxxx xxxxxxx

Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello James, I am Keith, one of the experts on Just Answer and pleased to be able to help you with your question. Unfortunately the GBP 7048 they pay for the Health Care programme is a benefit in kind and accordingly subject to UK taxation. Here is the Citizens' Advice summary: 'Medical insurance If your employer provides private medical insurance, this is taxable for everyone except for lower-paid employees.' [lower paid employees are those earning less than the personal allowance of 10.6K per annum. Thus your employer's action in including such benefits as part of your emoluments is quite correct. However, as you may have discovered, this has pushed you into the 40% tax bracket. The solution is simple; if you do not need the programme, which in the UK with the NHS seems a trifle unnecessary, then withdraw and reduce your income to more manageable levels. I do hope I have confirmed your way forward. I have private health cover for both me and my wife and it costs me less than 500 quid a year.

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