Tax relief medical insurance

C

cal2022

Registered User
Messages
23
I’m trying to check my tax credits certificate is in order and a bit confused by the health insurance relief so hoping someone can help.
My employer pays 75% of my policy and I pay 25%. This policy covers myself , my husband and our 3 children.

On my last payslip there was an amount of 221.75 as BIK 75% Vhi which I assume is the full value of what the employer pays so tax can be calculated on that. Then the other entry is 61.38 for VHI 25% (my contribution).

I’m a bit confused as I would have expected that those figures together would add to 100% and I could then work back to the 75/25 split from that but it doesn’t seem to be the case. That may be more of a question for my Hr than here though.
I’ve just logged into the VHi website and my premium is listed as 2946 which does work out to the 25% figure above but not the 75%BIK figure.

My biggest question is on the health insurance tax relief. I know there is a 20% relief but not sure which of the above figures should be used to come up with the figure for my tax credits cert.
Myself and my husband are jointly assessed if that matters as I only work part time and earn a lot less than him.

Thanks in advance for any help!
 
Your employer pays BIK on the gross cost of premium. So rough figures 2946 + 20% is 3535. You pay the net price. You need to fill a form to claim the 20% of the employers 75%. Confused ? I know.
3535 / 4 / 12 = 74 - your 25% (less 20% = 61)
3535 / 4 / 12 * 3 = 221 - employers 75%

You need to claim a tax credit for 20% of (221 * 12) 2652 less the cost of you hubby and kids but only to a max of 200 euro I think per annum. This may well be on your tax credits already so check it out.
 
Thanks for the quick reply. Because my employer pays for my husband and children (and we are jointly assessed) can I then add the tax credit of 530 (20% of 221x12) - from looking at the Revenue site the max of 200 is per adult and there’s 100 relief per child? Is that correct?

There is an amount of 400 on my credits but I’ve no idea where that came from so wanted to check it’s correct. From the above maybe it’s the max of 200 per adult but not including kids?
 
I don't know is the simple answer I guess kids don't get tax credits so maybe I'm way off. The tax credit is marked Medical Insurance relief on the tax form. If you are on PAYE anytime online it is there for you to check.
 
You must log in or register to reply here.
Back
Top