Can I pay my VHI and then reclaim from employer?

[LizzieP]

Can I pay my VHI and then reclaim from employer? Or do all employer-paid premiums HAVE to be paid direct by the employer? I have been paying my own premium and now my employer is going to reimburse me. It seems easiest to keep paying and then reclaim - I know employer will have to gross up and charge BIK on the grossed up amount. Is this possible? Thanks.

 

[Johnweber]

Did it used to be fully company paid or partly paid, like a subsidy, or salary deduction ? You are right to say that BIK would be payable if the employer pays for your premium. The advantage of you paying your own premium is that you would have greater control of the plan type, insurer etc.

 

[Black Sheep]

And if the employer pays your Vhi for you, you can claim the tax relief on it

 

[PyritePete]

You are right to say that BIK would be payable if the employer pays for your premium. .

Even if you claim for your premium on expenses ???

 

[Claimsman]

Even if you claim for your premium on expenses ???

This is not a tax free expense and is subject to BIK. If your employer does not deduct this BIK tax from your expenses, then you must declare this to the revenue when you complete your tax return. The return form will ask you specifically if you are in receipt of any benefit such as VHI, car etc...if you fail to declare, then you will be subject to the rigours of the revenue when they catch up with you..which they will.