Trying to understand Benefit in Kind on my payslip

T

Tim Robbins

Registered User
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52
On my monthy payslip it has:
MedIns BIK Y 144.48

This seems quite high. The company pay my laya health insurance and 10% of the cost for the rest of my family which I pay.
 
The gross premium amount is taxed as if it was normal salary. You'd need to post more info for others to understand the specific figures.

Note that you can claim some additional tax relief in this situation.

Medical insurance premiums

This page details tax relief on medical insurance premiums
www.revenue.ie www.revenue.ie

Policies paid by employers (as a benefit-in-kind)​

Your employer may choose to pay medical insurance for you or your family as a Benefit-in-kind. If they do, you will:
  • be taxed on the gross value of the policy or policies
  • and
  • need to claim medical insurance tax relief from Revenue as it was not given at source.
You can use myAccount to claim the credit(s) if your employer pays medical insurance for you or your family. You can make a claim during the year or after the year has ended.
Click to expand...
 
ClubMan said:
Note that you can claim some additional tax relief in this situation.
Click to expand...
Not sure this is always correct. In my case I'm taxed as BIK on my payslip for the gross premium (€1645.09) but then the deduction which is paid to Laya is the net premium (€1455.09). This figure is supposedly net of all tax reliefs and includes a portion of the Government Levy hence the reason it doesn't add up to 80% of the gross premium. I don't believe I can claim further medical insurance tax relief from Revenue ?
 
Flybytheseat said:
Not sure this is always correct. In my case I'm taxed as BIK on my payslip for the gross premium (€1645.09) but then the deduction which is paid to Laya is the net premium (€1455.09).
Click to expand...
I don't understand what you mean. If BIK is done on the gross premium then why wouldn't you be able to claim the relief?
 
You should be able to claim the 20% relief up to €1000 per adult, and company has to pay to revenue the tax relief they received from the insurance Co, as they are not entitled to the tax relief, that's the individual.
 
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