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With the new Conservative/Liberal government coming in and the focus on reducing the tax burden on individuals we thought it would be good to have a look at some of the tax liabilities that are associated with having a private medical insurance policy from your employer – and whether you may be better off from a financial stand point having your own policy outside your work etc.HMRC view employer provided health insurance as "benefit" you receive from your employer and as a result it is subject to taxation. That does mean however that in a benefit to cost ratio (assuming you're not in the higher bracket of taxation) that you could make a significant saving on your health insurance costs. You pay only about the 1/5th of the cost of the medical insurance rather than the full amount. AS you're paying tax on it rather than paying a medical insurance provider the full amount. And generally you're covered for most things that are not pre-existing conditions so the insurance should cover you for most modern maladies and not be simply a cash back policy or something similar.When the Tories are in power, historically, these kind of workplace benefits have been looked upon more favorably and it may be that the taxation regime they implement may reduce the tax burden on these more completely and allow your work to invest in your long term health and well being without penalizing you. With the impending spending cuts and everything projected to happen under these austere times medical insurance may become far more prevalent in the UK workplace than ever before.
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