Employer Paid Medical Insurance Tax Relief!

jinx9000

I just twigged that I could do this after reading this helpful article:

http://www.independent.ie/irish-news/hundreds-of-euro-up-for-grabs-in-tax-refunds-29834561.html

I no longer have Medical Insurance but when I was getting it paid by my employer it seems that I'm due personal tax credit on 20% of the gross cost of the Insurance!

Why they don't just automatically give you this is kinda obvious, so please go forward and claim before Christmas so you can get 2009's back too (can only claim 4 years back).

http://www.revenue.ie/en/tax/it/leaflets/it5.html

Bob!

dearg lady

I thought this relief was given at source no? So there would be nothing to claim back

jinx9000

that's what i thought and had never claimed it before! your claiming back the money that you lost due to the Benefit In Kind charge from the provided insurance in the first place!

"Where an employer pays medical insurance premiums on behalf of an employee and or their dependants, a Benefit in Kind charge will arise. PAYE, PRSI and Universal Social Charge will be deducted by the employer from any earnings, in respect of the value of the benefit provided."

Example 1:

Where the employer pays the full premium in respect of the employee.

The notice issued by the insurance provider to the employer shows both the gross and net premium due

Gross premium €2,000
Tax Relief at Source (TRS) € 400
Net premium €1,600


Employer

The employer pays the net premium of €1,600 to the insurance provider and pays the TRS of €400 to the Revenue Commissioners. The employer calculates the PAYE,PRSI and Universal Social Charge due on the gross premium of €2,000.

Employee

As the employee has not benefited from the TRS arising on the medical insurance premium paid by the employer, the employee is entitled to a tax credit of €400 (€2,000 at 20%) in his or her tax credit certificate.

Revenue

TRS section in the office of the Revenue Commissioners pays over the TRS of €400 to the insurance provider.