Is it not the USCable pay that the age related percentage is based on ?My understanding is, the total taxable pay(which includes any notional BIK), is what the age related pension limit, is based on.
This is presumably the USCable pay.step 1) calculate the taxable ytd pay, before EE Pension or EE AVC
Thanks fayf1)BIK & Pension age related Tax relief:
My understanding is, the total taxable pay(which includes any notional BIK), is what the age related pension limit, is based on.
Its irrelevant, whether the BIK is for Health Insurance, Company Car BIK, or any other BIK.
It is the total taxable pay(which includes all BIK Notional pay), on which the age related Employee Pension contribution max, is calculated on.
2) Health Insurance BIK:
You are taxed under PAYE, on the amount your Employer paid, known as the “gross amount”, (+USC & PRSI)and as this scenario(e.g. employer paying for it), means, you did not receive Tax relief at source(TRS), you have to claim tax relief yourself, at 20% of the amounts paid by the employer, which are capped at €1000 per adult on the employer policy, per year, and €500 per child per year.
So, where an employer pays for a health insurance policy, covering 2 adults(for at least €1,000 per adult & 2 children(for at least €500
per child), this would mean an additional tax credit claimable by the Employee of € 600.
If the employer pays for the Employee adult only, a €200 maximum tax credit is claimable.
In the scenario, where an employer pays for adult Employee children, then then up to €200 is claimable for that person.
You can claim this in the current year, by way of adding the tax credits on your Revenue My Account.
Alternatively, you can claim it for a prior year on a tax return, and if you have forgotten to claim it, you can go back 4 years, and have those tax years reviewed.
If it is the case where the adult/child amounts paid by the employer, are under €1,000/€500, then the amount claimable, is restricted, to the amount paid by the employer. This is more common for young children, which can be under €500 per annum, dependant on the coverage.
Likewise, if the amounts paid by your employer, exceed the annual caps, the claimable amount, is restricted to those annual caps.
Medical insurance premiums
This page details tax relief on medical insurance premiumswww.revenue.ie
Medical Insurance TRS, is a bit of an anomaly, so it is not uncommon, to find it confusing.
In the vast majority of instances yes, that is correct, but, leaving aside Cycle To Work & Travel Passes, which are both tax free and usc free, there could be, future circumstances, (allthough unlikely), where a payroll payment, is exempt from USC.This is presumably the USCable pay.
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