BIK - Medical Insurance premium question

angeldelight

I thought I understood this but the more I've read about it online the more confused I've become! I do understand that if your employer pays your medical insurance premiums for you then you are not getting the 20% tax relief at source you are entitled to, so this can be claimed back from revenue.

So does this only apply if your employer is paying your medical insurance premiums for you as a perk, i.e. they are not charging the employee (or does that even happen?) Or is that if they pay Aviva/VHI or whoever, but then deduct the premium on a monthly basis on your payslip? So basically you're paying the premium but having it spread out over 12 months...

Sorry don't even think I've explained myself very well!

Alan Shore

Where your employer pays it and it's subject to BIK then you are entitled to claim the credit because you are taxed on the gross premium.

If your employers pays it and it's deducted from your salary after tax then you are not entitled to the credit because you have paid the nett premium.

Hope that helps.

angeldelight

Yes that's great thanks - it's very simple really just couldn't get my head around it!