Trying to Understand Tax treatment of Health Insurance BIK

jack_pearse

Hi All

May be a silly question but:

My Employer pays my Health Insurance as BIK. I believe I can claim Tax Relief on this but when I opened my Health Insurance documentation, I can see that tax relief has been applied and this gave me pause.

Is it a case that the Employer pays the premium and gets the Tax Relief, but I am entitled to claim it back?

I want to make sure I am entitled to this as I am filling out my Form 11 currently

Thanks! 😊

ari101

You should have paid BIK on the gross cost of the policy before TRS. If the total applied for BIK on medical insurance premiums for 2021 matches that then you know for sure they did it correctly.

Your employer pays the net cost (after TRS) to the insurer, and then is required to pay the TRS portion to revenue as part of their corporation tax charge which you claim it back as a credit.

wedger

Hi all,

I am new to BIK and employer paid health insurance.

Can I ask is bik charged each week on my salary? My policy costs €1868 for the last 10 months of the policy - I paid BIK last week (paid bi weekly) of €105.05 plus I have to pay €217 towards the policy so at this rate my policy will cost me nearly €2,500. When I ijnput info into revenue it is only allowing me credits of €377 - I am totally lost Company are paying 80% of the policy

It's a bloody nightmare to understand!!!!

CryptoToFollow

BIK is charged on every payslip. If you get paid bi weekly, the BIK charged is 1/26th of the total. You don't pay BIK but instead it is a figure for notional pay. If you are in the higher tax bracket, you will pay tax at approx 50% of the BIK amount.

If total policy cost is €2,700 and you get tax credit of €377, the net cost is €2,323. You pay BIK on the €2,700 so its €103 bi-weekly.

You can only claim a maximum tax credit of €200 per adult or 20% of the charge for that adult, whichever is lower. The cap for children is €100 or 20% of the cost.

Hopefully this helps a bit.

whatever76

Check out this post on what to populate to get the 200 Euro tax credit on Form 11 . I too pay BIK for Laya as employer pays insurance, you just need to update form 11 to get the tax credit Form 11 Questions — boards.ie - Now Ye're Talkin'