I've have an option to pay for my own private medical at work, and then claim this back through expenses. Just check my thinking:
a) If I do this I've paid tax on it via PAYE through my wages, so there is no more tax to pay on it, for example as a benefit in kind.
b) If I instead took the option to use the work private medical scheme I pay BIK tax of course, and might also benefit from a cheaper annual cost negotiated by the company based on the volume of employees. Also, they absorb all the admin of course.
Right...?
Seems right to me - I'm not sure why you would choose to DIY unless your company scheme was particularly crap. Usually company schemes are far better than anything you can buy as an individual in my experience.
Also, does your company just charge you the BIK or does it top up your salary to compensate for the BIK? When we introduced PMI we increased the employees salary by the amount they would pay in BIK, which I am told is relatively common to do (otherwise low paid employees will often opt out for the few extra £ in their bank; but the company benefits from PMI too - in that people needing physio, minor surgery etc are back at their desks sooner!).
I’m not sure why you would choose to DIY
When I was negotiating my new job 4 months ago they didnt have a company wide scheme, yet agreed to match this benefit via my contract. I've arrived this month to find they are putting a scheme in place.
Also, does your company just charge you the BIK or does it top up your salary to compensate for the BIK?
The will top up to balance out the BIK for me (the employee) but I have to pay the BIK for my wife and kids cost element.
Thanks Poly.
I'm not a tax expert and its probably fine but...
I think claiming on expenses something through your work that's a personal benefit might be frowned upon.
This is a bit reducto ad absurdum but bear with me:
Say you had a company car at your last job that you paid BIK for. You new job doesn't have a company car scheme but really wants to offer you a job. They say fine go and buy a car an put it through expenses, that's clearly dodgy.
Private medical is clearly not in the same league as buying a car on expenses but its still a Benefit in Kind.
Just go for option B.
Just go for option B.
This, unless coverage of your own personal plan is different to the work scheme and you have pre-existing conditions that might not be covered in one but are in the other.
I pay BIK on company medical cover. I don't pay for the cover and don't have a negotiated increase in salary if I opt out.
I'm on our company scheme, this gets put on my p11D as a BIK.
i pay extra (~£30/month) for my wife to be on the company scheme, this comes out of my monthly pay as a post tax deduction.
IANAA
If you can claim as an expense your employer must regard it as a legitimate business expense. Assuming the expenses they pay you aren't taxed - you spend £100, they give you £100 then presumably it won't feature anywhere on your Self Assessment.
If it is a benefit though, then I can't see how it's also legitimate business expense.
and might also benefit from a cheaper annual cost negotiated by the company based on the volume of employees.
Our company folded a couple of years ago and was restarted but minus the health care perk. A few employees enquired about taking it up personally and their quotes (for the same cover and with same provider) were less than the company had been paying when buying in bulk!
