Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
This is a highly complex area, but in basic terms the health insurance paid for by your employer is taxable. Your employer will report this benefit in kind annually on a Form P11d and HMRC will adjust your income tax code number accordingly. You need not concern yourself with the sum paid to you for your stay in a private hospital as you will have already been, or are now, or will be in the future taxed through the Form P11d process. Here is the Gov UK advice on private medical insurance paid by an employer:
You usually pay tax on the cost of the insurance premiums if your employer pays for your medical insurance.
Check how your employer works out how much tax to deduct from your pay.
You can get some tax-free health benefits from your employer, eg:
If you have time and a wet towel to wrap around your head and the backs of lots of envelopes you can read the full gamut here:
I do hope that you have found my reply of assistance.
Hang on a minute, that is an entirely different scenario. If the cover is being provided by your employer through deductions in your pay to meet premiums it is not a benefit in kind at all. If these deductions are in respect of a reduced tax coding then indeed there is a benefit provided by the employer and is being property taxed.
The premiums would be taxed as I have explained. What is being paid out is an insurance distribution and outside the scope of UK taxation.
I do hope that I have shed some light on the position.
Please be so kind as to rate me before you leave the Just Answer site.
I have a private health insurance just like that; its benefits are outside the scope of UK taxation.