A
Ayrton Senna
Guest
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?
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.
You can only backdate claims for outstanding tax relief by 4 years these days.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?
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.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 ?
Yes - covered by the link that I posted above.I read somewhere that I should still get a tax credit. Is this 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.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?
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.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 will probably have to notify Revenue each year since the amount will probably change from year to year.Will I have to write in every year to claim or will it be automatic?
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.My wages Dept werent too happy with me looking for the info
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.She didnt seem to believe me when I said I could claim a tax credit even though my company pay's it.
Lots of people don't know about lots of tax credits/allowances - sometimes including Revenue staff!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.