Medical Insurance Tax query

Augusta11

Hi all,

My query is that my employer pays my VHI medical insurance in full. Both myself and the wife are on my policy. The overall policy for both of us comes to a total of €2,400. I pay benefit in kind on it.

For 2014, I was entitled to claim a tax credit of a maximum €2000 divided by 20% = a tax credit relief of €400.

There was a change made in Budget 2015 that meant the mamimum tax relief was reduced ( from the middle of October 2014 onwards ) to €1000 divided by 20% = a tax credit relief of €200.

My question is, am I only entitled to a tax credit relief of €200 now ( which is showing up on my latest tax credit cert on my Revenue PAYE ) or am I still entitled to receive a tax credit relief of €400 as I have 2 adults on my policy?

So basically is there a relief of up to €200 for each adult or is it now simply a case of a maximum relief of €200 regardless of how many adults or children are on my policy?

Any help on this would be greatly appreciated. I have checked Revenue website and it is unclear regarding what relief is available for more than 1 person on a policy.

Cheers, Augusta

Alan Shore

Any help here
http://www.revenue.ie/en/tax/it/leaflets/it5.html#section6

LizardKing

Augusta did you get this answered / sorted? I am in the same boat and am looking to see if I am due tax back (my company pays my VHI and the Wifes) but i'm not sure i've been getting the full relief from the taxman ... cheers

Augusta11

Hi lizardking

No i haven't got this sorted yet. Last year i was entitled to €400 relief for my policy which had my wife and i on it which was fully paid by my company. I got a letter from my employer to send into Revenue last year and then got my tax refund. Now in my last tax cert just b4 Xmas my relief is only €200. As far as i know i should still be entitled to €400 relief. I am going to request a letter from my employer to send to Revenue, im hoping its a mistake on their part.

i will reply with an update when its sorted 1 way or the other

LizardKing

Augusta11 wrote: »

Hi lizardking

No i haven't got this sorted yet. Last year i was entitled to €400 relief for my policy which had my wife and i on it which was fully paid by my company. I got a letter from my employer to send into Revenue last year and then got my tax refund. Now in my last tax cert just b4 Xmas my relief is only €200. As far as i know i should still be entitled to €400 relief. I am going to request a letter from my employer to send to Revenue, im hoping its a mistake on their part.

i will reply with an update when its sorted 1 way or the other

Thanks , I am in the same boat .. awaiting a letter from my employer to send into revenue so hopefully get something back. I also called the revenue but they were not very helpful and did not really understand the situation. I asked if I should fill out the claim for medical insurance relief tax credit form and she said to just get notice from employer and my p60 and send it into them ..

2ndcoming

It sounds like your problems are different, Lizardking it sounds like you have not yet claimed the relief at all hence you need the letter from the employer/P60,
Augusta it seems you have claimed the relief but lost the extra allowance for your spouse on your new tax cert. If I was you I'd give Revenue a call, if the 400 was allowed last year I'd say they will update yours over the phone.