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Question on BIK on Health Care

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  • 24-06-2019 8:57pm
    #1
    Steveo.1985
    Registered Users Posts: 27 ✭


    A question someone on here maybe able to help me with before I pester an accountant.

    Some of my colleagues have been doing a tax return for the amount of BIK payed on our company health insurance policy from 2015 to 2018 and have been getting sizeable refunds.

    I cannot submit mine through myPAYE as my wife was self-employed during this period and we were jointly assessed. Do I need to go through an account for this issue as Revenue consider me as being registered for income tax during this period.

    Note: I am a PAYE worker


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    #2
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    Steveo.1985 wrote: »
    A question someone on here maybe able to help me with before I pester an accountant.

    Some of my colleagues have been doing a tax return for the amount of BIK payed on our company health insurance policy from 2015 to 2018 and have been getting sizeable refunds.

    I cannot submit mine through myPAYE as my wife was self-employed during this period and we were jointly assessed. Do I need to go through an account for this issue as Revenue consider me as being registered for income tax during this period.

    Note: I am a PAYE worker

    You need to file amended Income Tax returns for those years with the amounts added in under the medical insurance field.

    Normally as the employers report the amount of medical insurance premiums to Revenue this credit is applied automatically so there shouldn't be any sizeable refunds due. Are you sure your colleagues are claiming tax relief in medical insurance premiums paid by their employer and not something else?


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    #3
    namenotavailablE
    Registered Users Posts: 59,564 ✭✭✭✭namenotavailablE


    relax carry on wrote: »

    Normally as the employers report the amount of medical insurance premiums to Revenue this credit is applied automatically so there shouldn't be any sizeable refunds due.


    Is this correct? It conflicts with the advice on the following web page from revenue.ie (about half way down the page):


    https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/medical-insurance-premiums/index.aspx


    Policies paid by employers (as a benefit-in-kind)

    Your employer may choose to pay medical insurance to an approved insurer for you or your family as a benefit-in-kind. If they do, you will:
    • be taxed on the gross value of the policy or policies
    • need to claim medical insurance claim tax relief from Revenue as it was not given at source.

    Free Excel net pay calculator- https://taxcalc.eu/monthlyss/Employee%20PAYE%20calculator.xlsm



  • Options
    #4
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    namenotavailabl wrote: »
    Is this correct? It conflicts with the advice on the following web page from revenue.ie (about half way down the page):


    https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/medical-insurance-premiums/index.aspx

    The amounts paid by the employer should have been noted in their P35s which meant a tax credit would have been applied to the tax year and should have also carried forward each year for their employees. This would show on the taxpayers tax credit cert and also preloaded in Form 12s when the taxpayer files their return. You may have cases where the amounts carrying forward were incorrect (too high or too low). Or some smaller employers may haven't reported it at all.


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    #5
    allthedoyles
    Registered Users Posts: 6,893 ✭✭✭allthedoyles


    I know an employee in a health insurance company and health insurance Bik was not applied automatically.
    Revenue asked the employee to forward a letter confirming the gross medical insurance premium on which BIK is been charged and then backdated it from start.

    Revenue also sent the employee the same link as namenotavailable posted above through online enquiries


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    #6
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    allthedoyles wrote: »
    I know an employee in a health insurance company and health insurance Bik was not applied automatically.
    Revenue asked the employee to forward a letter confirming the gross medical insurance premium on which BIK is been charged and then backdated it from start.

    Revenue also sent the employee the same link as namenotavailable posted above through online enquiries

    Not all employers were doing it under the P35 system and if the information wasn't already on file, then the information in the link is correct.

    It will hopefully change now under the PMOD system in that there should be more information re the BIK paid meaning hopefully people won't have to manually claim for it.

    And now that I think of it, that information on the website should be updated to advise taxpayers to check if the are already getting the relief as it's easy to see if it's already been granted via MyAccount.


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