Taxes too much Benefit In Kind?

TK Lemon

My boyfriend joined a work group scheme for insurance. He thinks he is paying too much BIK.

The value of the scheme is €908.20

His salary is €37k p/a.

He started work in the place in mid October if that makes a difference.

He is paying €107.48 per month BIK. Over a 12 month period, this amount of BIK amounts to more than the policy is worth.

relax carry on

TK Lemon wrote: »

My boyfriend joined a work group scheme for insurance. He thinks he is paying too much BIK.

The value of the scheme is €908.20

His salary is €37k p/a.

He started work in the place in mid October if that makes a difference.

He is paying €107.48 per month BIK. Over a 12 month period, this amount of BIK amounts to more than the policy is worth.

BIK is not something he pays, the company is paying that on his behalf and he is taxed on it as if it was his wages. He needs to get a breakdown of the bik from the company and also look to claim tax relief of 20% in the premium paid on his behalf.

namenotavailablE

As above, he needs to ask his payroll department for the details of how the deduction for BIK is computed. Bear in mind that the BIK deduction will consist of the sum of the tax/PRSI/USC as well as the gross value (i.e. the non-cash amount which is treated as income)

Also, since he started in October, it's possible that he's being charged for a full 12 month's tax/PRSI/USC in 2018 in the period October-December so the deduction is maybe 4 times as high as normal. Essentially, a quick request from his payroll section should help to clarify things but you can always come back here if it doesn't!