Benefit in Kind Tax

sonyvision

Hi Guys,

Looked up on revenue but find this difficult to answer.

If your employer provides private health insurance, and willing to pay mileage at a standard civil rate according to revenue lets say this would be 10euro a day.

Is the mileage payment taxable? or give net. Also how is the benefit in kind value calculated and taxed on private health insurance.

Thanks

GreatDefector

For me, for health insurance, the cost of the monthly plan is added to my salary so my gross pay that month is my salary plus the BIK

Then tax comes into it as normal

Mileage, I've no idea

sonyvision

Hi GreatDefector,

Perfect I was thinking this could be the answer, so your basically get the cost of insurance at a discount due to PRSI, USC & PAYE tax deductions.

I assume if they pay any membership fees this is also the case? lets say 650 tennis membership, the next cost is approx 30 euro a month from next pay over the course of 12 months.

DmanDmythDledge

With the private health insurance, also don't forget that you are entitled to have the TRS (difference between gross and net premium) added to your tax credit certificate in addition to your standard €3,300 (or whatever tax credits you may be claiming).

Also the cost of the monthly plan added to your payslip as a BIK is the gross amount of the premium.

If the mileage payment is for business mileage and does not exceed the civil service rates then this is not taxable.

A point to note that travel from your home to your place of work is not considered business mileage - reimbursement for this would give rise to a BIK. For business mileage, the amount allowed would be the mileage from your ordinary place of work to wherever you are travelling.

sonyvision

Thank you,

I have my head around the private health insurance & Mileage.