Bik

[johnjohn]

Hi there

Am going to have some orthodontic (braces) work done shortly. I'm told i'll be able to claim back some of this through med1 forms at the tax rate i pay at. Just wondering if this will be 20 or 40 % cos my actual salary is below the threshold but when my notional pay for BIK is included its over the cut off point?? Anyone know which one will apply??
Thanks

 

[ClubMan]

It'll be 41% (not 40%) to the extent that you pay 41% tax on any income and 20% thereafter. For example if you pay 41% tax on only €100 and incur qualifying MED1/2 expenses of €200 then you get €100 @ 41% and €100 @ 20% back.

 

[johnjohn]

thanks clubman

One more question if thats the case. By the time i go to claim back at he end of each year i should be a good bit above the threshold. I assume that tax back will be assessed on what i am eaning at that time rather than when i start treatment now??

 

[ClubMan]

By the way:

Bik

 

[ClubMan]

thanks clubman

One more question if thats the case. By the time i go to claim back at he end of each year i should be a good bit above the threshold. I assume that tax back will be assessed on what i am eaning at that time rather than when i start treatment now??

Yes - of course. The MED1/2 claims are assessed on your overall annual income.