Hi guys
Just had the option to "opt in" to the company Private Medical Insurance scheme. Not so much worried about if it's good or bad scheme but trying to find out how much my take home will physically decrease each month?

"The scheme costs £375 a year which the company pays and then You will get taxed as if they have given the payment to you, you will then be taxed on this amount at your nominal tax rate (20 or 40%) dependant on your income"

I'm sure I'll be in the 20% bracket. Just wondered if it made sence to anyone? Was hopeing for a "it means £xxx each month won't go into your bank account" kind of anwser?

Sorry, not very good at anything like this.

Cheers
Tel Accept, some days your the pigeon, some days your the statue!

HI

I'm no expert but I suspect this will be classed as a benefit in kind. I have a similar thing and the benefit (ie £375.00) will appear on our P11D which you should get each year. This will be taken into account when your tax code is calculated and therefore will reflect in your monthly deductions. You will pay tax at your rate on the benefit as part of your monthly deductions.

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It goes on your P11d as a benefit in kind. The value (£375) is divided by 10 and then rounded up, so 38. That 38 is then deducted from your tax code.

Aside from the fact it sounds awfully cheap (my Axa PPP scheme costs £80 a month, so £960 a year) the 38 off your tax code, as a 20% tax payer will cost you £6.33 a month in extra tax.

Yes, that's correct. Medical cover is a BIK so will appear on your P11D. You might want to let HMRC know too though as they don't necessarily pick up on it in my personal experience. Then they chase you for unpaid tax......

In your case it means your tax free pay us reduced by by £375, so you should be able to work out from that what it might cost you. In other words, gross salary less adjusted tax free amount equals taxable salary, from which take tax AND NI to arrive at net pay. Divide result by 12. Check HMRC website which I think has a guide on how you work out your net pay.

As mentioned above, £375 sounds like a bargain, my cover (me and Mrs S) from WPA is about £1500 on my P11D, so costs me dear in cash terms as I'm in the 40% bracket. Well worth it tho.

Guys. Thanks so much!
I'm sure it's nowhere near fantastic. But for that sort of money I'll opt in.
I was just really struggling with what it meant in actual £££ missing each month.

Thanks again for the advice!
Tel Accept, some days your the pigeon, some days your the statue!