# VHI tax relief



## Ayrton Senna

I have never claimed tax relief for VHI which I'm paying 10 years. I believe its taken at source now, how long has this been the case and can I claim relief for years gone buy?


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## Guest120

This article will give you a bit more info, you can claim back relief for 4 years I think.



> New tax relief system for health insurance
> [Posted: Mon 26/03/2001]
> From next month, tax relief for medical insurance will be automatically available at source. Any policies renewed or taken out after the 6th of April will be billed at the relief-at-source rate.
> This means that people with a VHI or BUPA Ireland policy can now expect to hand over 20% less of a premium when they renew or purchase their insurance. Under the new system, the onus is on the insurer to claim back the remainder from the Revenue Commissioners.
> It could lead to an increase in the uptake of health insurance, as people who previously did not earn enough to claim back the tax relief will now benefit from the reduced premiums too. VHI and BUPA Ireland will automatically administer the reduced payments for all.
> As 2001 is a short tax year (from April to December), the old system of claiming back the tax relief will run alongside the new relief-at-source system for this year only. From 2002, all tax relief on medical insurance will be available at source only.
> All enquiries about the relief-at-source scheme should be made to the Tax Relief at Source section of the Revenue Commissioners. They can be contacted at 1890 463626.


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## jrewing

My wife is covered by a foreign medical insurance (European Benefits Administration) through the company she works for, and pays a proportion of it herself. In this case, tax relief will not happen at source. How can she claim it ?


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## ClubMan

Ayrton Senna said:


> I have never claimed tax relief for VHI which I'm paying 10 years. I believe its taken at source now, how long has this been the case and can I claim relief for years gone buy?


You can only backdate claims for outstanding tax relief by 4 years these days.


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## ClubMan

jrewing said:


> My wife is covered by a foreign medical insurance (European Benefits Administration) through the company she works for, and pays a proportion of it herself. In this case, tax relief will not happen at source. How can she claim it ?


Is she being charged _BIK _tax/_PRSI _on the employer's contributions? See this thread:                                                                                                                  is Health Insurance Taxable? I guess that she just claims relief on the relevant amounts by writing to _Revenue _with as much detail as necessary about her situation.


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## Guest124

I used to get a Tax Credit every year on my Statement of Determination but this stopped with the new relief system around 2001 or 2002. My company has always paid my VHI plan B and I do not pay anything. Every month I am taxed on 56.72 for VHI in my payslip as Benefit in Kind. I read somewhere that I should still get a tax credit. Is this correct?
I phoned the Tax office last March and explained the situation and was told as long as I didnt pay anything I am not allowed a credit. What is correct?
The main commisioner I think was on Six One tonight and he said I should get a tax credit. Please help!


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## ClubMan

BroadbandKen said:


> I read somewhere that I should still get a tax credit. Is this correct?


Yes - covered by the link that I posted above.


> I phoned the Tax office last March and explained the situation and was told as long as I didnt pay anything I am not allowed a credit. What is correct?


That is wrong. You are still entitled to a tax credit even if your employer is paying your premiums and you are subject to _BIK _on them.


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## Guest124

Thanks Clubman -pretty annoyed with the tax office -as mentioned before I phoned them back in March and the Woman insisted I was not entitled to anything. I will ring them again and insist they go back the full 4 years which is the maximum I believe.


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## ClubMan

_Revenue _make mistakes. You're better off getting independent opinion. 4 years is the max for backdated claims as mentioned above.


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## Guest124

I phoned the tax office this morning and I was advised I would have to contact my wages Dept in work and get the vhi amount's (Gross figure is it?) that they paid for me for 2002 - 2005. I asked could I apply online and was told i could only claim from 2005 (what's the point of online application then) if I did apply via the Internet.
I have to write in with the amounts before the end of December 2006 otherwise I cant claim for 2002. Will I have to write in every year to claim or will it be automatic? The guy in the tax office seemed unsure.


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## ClubMan

BroadbandKen said:


> I phoned the tax office this morning and I was advised I would have to contact my wages Dept in work and get the vhi amount's (Gross figure is it?) that they paid for me for 2002 - 2005.


You should have received this anyway from the _VHI _when they confirmed your cover even though you were not paying. Your payslips (_VHI BIK _figure) should also make it clear how much the gross premium is that your employer is paying on your behalf.


> Will I have to write in every year to claim or will it be automatic?


 You will probably have to notify _Revenue _each year since the amount will probably change from year to year.


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## Guest124

Thank's for that - yes I have my renewal Notification for Hospital Cover for 1/08/06 to 01/08/2007 but reckon I threw out the previous year's ones.
My wages Dept werent too happy with me looking for the info -do you think I would get it from the VHI or would they tell me it's confidential as such and only the company could request it?


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## ClubMan

I don't understand why your payroll department would be unhappy with you asking for this information. You could always ask the _VHI _and they will probably give it to you. At the very least they should be able to tell you the past years' renewal premium for your level of cover which will presumably be the same thing? Do you not retain payslips for past years?


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## Satanta

BroadbandKen said:


> My wages Dept werent too happy with me looking for the info


Happy or not it's part of their job to supply information such as this if requested. They may give you a lecture on not retaining the information yourself, but no excuse for them not providing it.


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## Guest124

Yes I keep my payslips which show my BIK amount each month.


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## ClubMan

So the amount payable in any one tax year should be easily calculated from the _VHI _amount on the payslip on which _BIK _tax/_PRSI _deductions are calculated.


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## Guest124

Yes BIK VHI 56.72 * 12 = €680.64 and my Renewal Notification is €680.66 for 01/08/06 - '07.
I phoned VHI in between these postings and they will send me out a letter with the amounts in a few days. They had taken my e-mail address and then offered to post out the amounts - I said it's fine just e-mail me and the girl said it will probably be "bulky" so it will be posted out. What does she think I want my full VHI file??
Anyway again when I first spoke to her she started giving me a history lesson about how in 2001 the tax procedure changed etc. for medical premiums. She didnt seem to believe me when I said I could claim a tax credit even though my company pay's it.
From speaking to people in general they all dont seem to realise that you can get a tax credit and of course I was even told back in march '06 by the tax office that you cant claim a credit. The guy I spoke with today in the tax office seemed abit more clued in.
It's lucky I'm off work for the day.


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## ClubMan

BroadbandKen said:


> She didnt seem to believe me when I said I could claim a tax credit even though my company pay's it.


The _VHI _rep who set up our company scheme was the one who told us that we could claim that credit even though the employer was paying.


> From speaking to people in general they all dont seem to realise that you can get a tax credit and of course I was even told back in march '06 by the tax office that you cant claim a credit. The guy I spoke with today in the tax office seemed abit more clued in.


Lots of people don't know about lots of tax credits/allowances - sometimes including _Revenue _staff!


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## IrlJidel

There's an example on the revenue site where employer is paying your full preminium as a BIK

see [broken link removed]

Example 1

            Employer paying the FULL Premium for an employee

            The renewal notice to the employer shows the net premium due - €1,600              (Gross Premium is €2,000)


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## Guest124

Thanks Irljidel for link.


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## Guest124

actually it seems the company from this example pays €400 to the tax office and then it gets passed to the medical company. Why not let the employer  just pay the €2,000 to medical insurance company?
Am i missing something?
Has tobe a simpler way than this for revenue,employer and employee.


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## Guest124

My last Notice of determination of tax credit which included a tax credit for medical insurance was for period 6 april 2001 to 31 december 2001 (the short tax year). The BIK only started tobe deducted from my salary in January 2004. If I claim a tax credit for the last 4 years -2002-2005 could I owe Benefit in Kind for period aprox. 2001 - December 2003?
Is my last four years that I can claim 2002-2005 and if so that means I claim for 2006 next year.
Sorry this whole tax system and changes etc. does not make things easy.


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## ClubMan

If your employer was paying _VHI _on your behalf then you owe tax/_PRSI _on the _BIK _regardless! Your employer should have been deducting this via payroll for the last few years since the rules changed to required this stuff to be dealt with that way.  Sounds like you need to regularise your _BIK _liabilities and claim the tax relief which will mitigate your bill a little. A taxpayer can only backdate claims for outstanding credits/reliefs etc. by 4 years. _Revenue _can go back indefinitely to claw back outstanding liabilities (and interest/penalties if applicable although these will probably not apply for this sort of situation as long as you come clean if applicable).


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## Guest124

You trying to frighten me -  ! I understand your points but sometimes it's no pain -no gain -for each year that goes by I can only go back 4 years so maybe short term pain and long term gain - we will see.


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## ClubMan

BroadbandKen said:


> You trying to frighten me


No - just telling you as it is according to my understanding of matters.


> I understand your points but sometimes it's no pain -no gain -for each year that goes by I can only go back 4 years so maybe short term pain and long term gain - we will see.


I don't understand what you mean. But if you have an outstanding liability then you need to deal with it.


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## ClubMan

I see from [broken link removed] that they plan by 2008 to simplify the tax relief treatment for employees whose employer pays their health insurance premiums as a _BIK_:


> *Measures to come into operation in 2008
> 
> * *Tax Credit where Medical Insurance is paid by employer
> 
> *        The operation of tax relief at source for medical insurance does not          currently apply to individuals whose medical insurance is paid for by          their employer and individuals have to apply directly to Revenue for the          appropriate tax credit. Revenue is making arrangements to have the necessary          medical insurance details provided by employers on the annual P35 employer          return and Revenue will apply the appropriate tax credit automatically.


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## Guest124

Just got a nice cheque today from Revenue in regards to above for €377.60 -I'll drink a toast to you Clubman with my first Pint!


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## ClubMan

Good - you can send me a cut if you like!


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## sullyman

I have VHI BIK @ 56.21 monthly

but under Non-Tax adjustments, the 56.21 is listed.

I'm guessing i do not qualify for any tax credit. Am i right?

S


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## Guest124

Have the new arrangements started and should I now claim for 2006,2007? Please read my previous posts and my question will make more sense. Better yet Clubman might answer my question.


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## ClubMan

BroadbandKen said:


> Have the new arrangements started


You mean for granting the relief automatically? Not as far as I know.


> and should I now claim for 2006,2007?


You mean for the employee tax credit on premiums paid by the employer (and subject to BIK deductions at payroll)? Yes.


> Please read my previous posts and my question will make more sense. Better yet Clubman might answer my question.


Stick another pint on that _IOU_!


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## Guest124

Thanks for the quick reply ClubMan.


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## jerrylow

I have not claimed this tax credit ever. If i claim now can i claim for 2007,2006,2005 and 2004 or is it just 05-08.


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## Elitist

I have done this recently under PAYE
My health insurance is 100% paid by employer and I pay BIK on it

This is the letter I wrote


I wish to apply for Tax credits on my Health Insurance Paid by my employer ACME
 Registered Number 5555555ie) on my behalf. During the years 2004-date ACME have paid health insurance in full on my behalf and treated the premiums as notional pay through my payroll
The payment details are as follows
2004 EUR 2000           
2005 EUR 2000
2006 EUR 2000
2007 EUR 2000
2008 EUR 2000


 I would be obliged if you could apply these figures to my credits for 2004-2008 and issue balancing statements for 2004-2007.


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## ClubMan

jerrylow said:


> I have not claimed this tax credit ever. If i claim now can i claim for 2007,2006,2005 and 2004 or is it just 05-08.


You can claim it for this year and backdate claims for 2004-2007 inclusive before the end of 2008.


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## jerrylow

Thanks Folks, Just got off the phone with a very nice lady called Mary in the revenue and we were able to do the whole lot over the phone ( i got a spreadsheet from my accounts dept. for amounts paid each year). They are now going to send out balancing statements for each year followed by a cheque for €1466. Nice one. This is agreat site.


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## Guest124

*Measures to come into operation in 2008

Tax Credit where Medical Insurance is paid by employer

*The operation of tax relief at source for medical insurance does not currently apply to individuals whose medical insurance is paid for by their employer and individuals have to apply directly to Revenue for the appropriate tax credit. Revenue is making arrangements to have the necessary medical insurance details provided by employers on the annual P35 employer return and Revenue will apply the appropriate tax credit automatically. 

- This never happened of course. Any idea when it will?


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## Tacos

Just read this whole thread.  I am so confused.  If Broadband Ken is getting his VHI paid for by his company and this is a BIK then how would he be getting a refund?   I don't receive any BIK from my company for anything (yet)

What about people who pay VHI themselves normally without company assistance-is this tax deductable?


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## Guest124

Tacos - If you pay VHI directly your premium is already deducted for tax purposes.


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## AndyDub

another related question. Before we got married last year , I was paying my wife's VHI each month directly. Can I claim relief on this? If so, which form is it? Thanks.


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## NovaFlare77

AndyDub said:


> another related question. Before we got married last year , I was paying my wife's VHI each month directly. Can I claim relief on this? If so, which form is it? Thanks.


 
The tax relief is deducted at source, so the premium you paid is already reduced by the tax relief.


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## Guest124

Just got in the post an amended tax credit certificate for 2009 and it includes a Medical Insurance Relief of €158.60. I still have to claim a few year's back but it's nice to see finally that anybody will automatically get it as a tax credit.


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## Guest124

Would all VHI Plan B Group Scheme's be the same amount each year for each company on them or could the amount differ from company to company? I am trying to put in a new claim for 2006-2008 and work out amounts.The renewal date of policy is in August instead of January 1 which also complicates matter's.


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## NovaFlare77

The cost of Plan B (or any other health insurance product) would be the same for all group schemes. The yearly cost would vary depending on price increases and the like and there might be a variance on any given date because of renewal dates. But at the end of the day, if Plan B is €900 then at some stage all members will have paid that.

You should be able to get the costs quite easily from VHI, either by telephone or email.

As for the renewal dates and the Revenue's year running at different dates, Revenue should be au fait with this. Just tell them what the gross premium was at each renewal.


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## Guest124

Thanks NovaFlare77 -very helpful and I gave them a call -cheque will be on it's way. The girl on phone didnt seem to know why the relief has turned up now on my amended tax certificate. I did nothing on my part -maybe it was my employer.


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