Question on Irish Life Health Insurance BIK

H

Henning G

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Hello

My company pays the health insurance for me and my wife. This appears as a Health Insurance BIK in my monthly payslip (311.4€) for a yearly cost of 3736.8€
This below is paid by my employer. I believed that I could get 200€ tax credit for me and 200€ for my wife, by claiming the tax credit through myAccount but can someone tell me please if it’s already applied at source ? In the Irish Life premium policy breakdown I see a Tax Relief item of 380€, I wonder if this is some tax relief given to the employer or applied already to me at source, which means I need to avoid selecting the benefit for a tax credit in the return in myAccount ?


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Thank you
Henning
 
Hi Henning,
The €380 "Tax Relief" on the Irish Life breakdown is the Tax Relief at Source (TRS) discount. When an employer pays the premium, it's your employer who gets that discount, not you.
You, on the other hand, are taxed on the full cost of the policy as a benefit in kind (your €311.40 a month). Revenue's guidance for exactly this case is that you can then claim Medical Insurance Relief yourself at the standard rate, because you haven't had the TRS benefit.
So yes, claim it in myAccount: PAYE Services > Manage your tax for the current year > Add new credits > Health > Medical Insurance Relief. For the two of you that's normally up to €200 each (20% of up to €1,000 of premium per adult), and it can't be more than the premium you were taxed on.
For earlier years you can go back four years: request a Statement of Liability for each year and add the relief in that year's income tax return.
Nothing is applied for you at source when the employer pays, so you won't be claiming it twice.
 
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