How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask MyVirtualCPA Your Own Question
MyVirtualCPA, Accountant
Category: Tax
Satisfied Customers: 16632
Experience:  CPA with Master's degree in accounting
Type Your Tax Question Here...
MyVirtualCPA is online now

I have had health insurance through company scheme since retired

This answer was rated:

I have had health insurance through company scheme since retired in 1997. Most of the cost was paid by my former employer.
Due to my retirement date, I had no tax liability for the payment made by the company.
The company started to demand a contribution some years ago due to increasing costs and this I paid.
In the current tax year, I accepted an offer to cease taking the benefit and took a cash settlement. Tax has been deducted.
As benefit was not taxable, it seems logical for the cash settlement to be non-taxable as I have to use the amount involved to provide for my own medical costs in future.
Will HMRC accept my contention?
Thank you for your question. My name is ***** ***** I will be happy to help you
Unfortunately this is a cash benefit, and your contention will not be agreed with -- only the benefit of receiving the health insurance is not taxable when you receive cash then this is a cash benefit and is taxable, unfortunately
I wish I had better news
Please let me know if you need anything additional. If not, please rate positive so that I may receive credit for assisting you today.
MyVirtualCPA and other Tax Specialists are ready to help you