VHI - confused about deduction (before or after tax?)

[sun_sparks]

I've discovered that my voluntary VHI deductions have been taken off my pay AFTER tax.

I'm confused - the whole reason I went through my company was because I thought it was deducted BEFORE tax? Or is it something to do with the fact that I'm not entitled to it as an employee benefit yet?

(I get my bus ticket deducted before tax, so what's the difference?)

 

[CCOVICH]

You are given a tax credit at the standard rate for health insurance, the figure you see in your payslip is the total less a credit of 20%. If in doubt, check the letter you get from the VHI.

The annual travel pass is allowed as a deduction against gross for PRSI and your marginal tax rate (same as a pension deduction)

 

[sun_sparks]

Thanks CCOVICH - I'll check the letter tonight.

 

[scuby]

as far as i know from 2001/2002 the rate that vhi charge is less the tax rate... before you would have to claim it back from the revenue but they set it up that you get the tax reduction at source when you buy a vhi policy.