Query: Adding BIK to form e12

RINO87

Hi folks,

When I'm filling out online form e12 is there an option to add in BIK that I'm just not seeing? I'm taxed on BIK and have a letter from my employer stating the same, along with the amount. Can I somehow attach this letter to the online form, or is there a field for it that I'm missing?

Form e12 is required to complete a balancing statement.

Thanks.

gerrybbadd

RINO87 wrote: »

Hi folks,

When I'm filling out online form e12 is there an option to add in BIK that I'm just not seeing? I'm taxed on BIK and have a letter from my employer stating the same, along with the amount. Can I somehow attach this letter to the online form, or is there a field for it that I'm missing?

Form e12 is required to complete a balancing statement.

Thanks.

The BIK is treated as notional pay, and included in your taxable pay figure. There is no need to differentiate between regular pay & BIK

RINO87

Thanks for the info Gerry, but I'm still a little confused by this. I should have stated the the BIK was in relation to health insurance

Going by what is said below on the Revenue website, I need to inform them that my employer is contriubtes towards my health insurance. I cant see how I can do that on form e12.

Any thoughts?

Employer Paid Policies
In some limited situations the TRS system does not apply, for example where an employer pays the medical insurance premiums on behalf of an employee or his or her dependants. In these circumstances a Benefit in Kind charge will arise. PAYE, PRSI and Universal Social Charge (USC) will be deducted by the employer from any earnings, in respect of the value of the benefit provided. As the employee has not benefited from the TRS arising on the medical insurance premium paid by the employer he or she is entitled to tax relief in his or her tax credit certificate (TCC).

Claiming Relief
A tax credit for the medical insurance premiums can be given to the employee based on the information submitted by the employer in his or her end of year return (Form P35L).

Where the tax credit has not been given on the TCC for the current year, the employee can claim it by phoning his or her Regional PAYE LoCall Service whose number is listed at the end of this leaflet.

Where the tax credit has not been given on the TCC for a prior year, the employee can claim it by completing a Form 12 for that year. The eForm 12 is the electronic version of the form and is simpler to complete than the paper Form 12.

The following examples illustrate how tax relief is applied where medical insurance premiums are paid by employers.

Example 2:
Single individual - Employer pays 100% of the premium

Gross premium paid by employer is €1,500
Tax relief related to employer share = €1,000 @ 20% = €200
Net payment to be made by employer to insurer will be €1,300
Employer pays €200 to the Collector-General
Gross premium paid by employee is Nil
Employer

The employer calculates the PAYE, PRSI and USC due by the employee on the gross premium of €1,500 and also pays €200 to the Collector-General in respect of the tax relief on the policy.

Employee

As the employee has not benefited from the TRS on the premium paid by his or her employer, and is charged to BIK on €1,500, he or she is entitled to a tax credit of €200 in his or her tax credit certificate.

Revenue

TRS section in the office of the Revenue Commissioners pays over the TRS of €200 to the insurance provider.

gerrybbadd

RINO87 wrote: »

Thanks for the info Gerry, but I'm still a little confused by this. I should have stated the the BIK was in relation to health insurance

Going by what is said below on the Revenue website, I need to inform them that my employer is contriubtes towards my health insurance. I cant see how I can do that on form e12.

Any thoughts?

Employer Paid Policies
In some limited situations the TRS system does not apply, for example where an employer pays the medical insurance premiums on behalf of an employee or his or her dependants. In these circumstances a Benefit in Kind charge will arise. PAYE, PRSI and Universal Social Charge (USC) will be deducted by the employer from any earnings, in respect of the value of the benefit provided. As the employee has not benefited from the TRS arising on the medical insurance premium paid by the employer he or she is entitled to tax relief in his or her tax credit certificate (TCC).

Claiming Relief
A tax credit for the medical insurance premiums can be given to the employee based on the information submitted by the employer in his or her end of year return (Form P35L).

Where the tax credit has not been given on the TCC for the current year, the employee can claim it by phoning his or her Regional PAYE LoCall Service whose number is listed at the end of this leaflet.

Where the tax credit has not been given on the TCC for a prior year, the employee can claim it by completing a Form 12 for that year. The eForm 12 is the electronic version of the form and is simpler to complete than the paper Form 12.

The following examples illustrate how tax relief is applied where medical insurance premiums are paid by employers.

Example 2:
Single individual - Employer pays 100% of the premium

Gross premium paid by employer is €1,500
Tax relief related to employer share = €1,000 @ 20% = €200
Net payment to be made by employer to insurer will be €1,300
Employer pays €200 to the Collector-General
Gross premium paid by employee is Nil
Employer

The employer calculates the PAYE, PRSI and USC due by the employee on the gross premium of €1,500 and also pays €200 to the Collector-General in respect of the tax relief on the policy.

Employee

As the employee has not benefited from the TRS on the premium paid by his or her employer, and is charged to BIK on €1,500, he or she is entitled to a tax credit of €200 in his or her tax credit certificate.

Revenue

TRS section in the office of the Revenue Commissioners pays over the TRS of €200 to the insurance provider.

You claim it under tax credits, entitled Medical Insurance Relief.

RINO87

Thank you