Does the medical aid benefit offered by work incur tax?

Posted by PuzzledResolution484@reddit | AskUK | View on Reddit | 6 comments

A while back i tore my ACL ligament. My boyfriend added me on as his dependent on his bupa medical aid as he started a new job and they offered it. I managed to get my surgery covered as the cover covered pre-existing conditions. However he asked me £690 as he says that’s the tax he was charged as i was his dependent. Is it true a medical benefit from the workplace is taxable and to this degree or is this lies?

Reply to Post

6 Comments

[-]

amazing_luna@reddit

It’s true that work medical benefits can be taxed, especially if you add a dependent. But £690 sounds really high. He should be able to show you proof, like a payslip or a tax form.

[-]

notanadultyadult@reddit

Sounds about right to me. Mine is £241 a month for me and hubby so the full taxable benefit for the year is £2,892. At 40% tax, that would be £1,157 (£578 each). So if OP’s bf is a 40% taxpayer, then it could be right.

[-]

notanadultyadult@reddit

Yes it’s a taxable benefit in kind. He should have discussed this with you before adding you though. Bit of a shitty thing to do retrospectively. For reference: my hubby is on mine and I pay the tax but I don’t ask him to compensate me for it.

[-]

nininoots@reddit

Medical insurance is a taxable benefit. The value of the benefit will be on his P11D supplied by his employer. He will be paying tax on the benefit The value sounds about right. However, that could be the value for his insurance with you added rather than the marginal extra cost of adding you.

[-]

EFNich@reddit

Yes you do get charged for the tax on the plan and also for the excess if you use it. However charging you for it after the fact isn't particularly fair, he should have asked you if you wanted to go on it (as its optional) and if so it costs X amount.

[-]

AutoModerator@reddit

**Please help keep AskUK welcoming!** - When repling to submission/post please **make genuine efforts to answer the question given**. Please no jokes, judgements, etc. - **Don't be a dick** to each other. If getting heated, just block and move on. - This is a strictly **no-politics** subreddit! Please help us by reporting comments that break these rules. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AskUK) if you have any questions or concerns.*