VHI tax relief

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.
 
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.
 
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).
 
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.
 
BroadbandKen said:
You trying to frighten me
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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.
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I don't understand what you mean. But if you have an outstanding liability then you need to deal with it.
 
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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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!
 
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
 
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.
 
BroadbandKen said:
Have the new arrangements started
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You mean for granting the relief automatically? Not as far as I know.
and should I now claim for 2006,2007?
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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.
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Stick another pint on that IOU! :)
 
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.
 
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.
 
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.
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You can claim it for this year and backdate claims for 2004-2007 inclusive before the end of 2008.
 
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.
 
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?
 
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?
 
Tacos - If you pay VHI directly your premium is already deducted for tax purposes.
 
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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