tax on medical insurance

[g1057]

i pay £40 per month for private medical insurance, working out at £480 per year, however my company have given a figure of £550 to the taxman .on which i have to pay tax, they have given them this figure for the last 5 years ,even though 5 years ago i was only paying £336. can they do this or should they give the tax man the correct amount that i pay each year. thanks

[factor-fiction]

This doesn't sound quite right to me. You only pay tax if it's a 'benefit in kind'. If you pay the full cost of the insurance out of after tax income then there should be no more liability for tax on this.
Perhaps you are only paying part of the actual cost with the employer subsidising the premiums. The employer's subsidy is then a benefit in kind on which you will be charged tax

[g1057]

my medical insurance is subsidised by company , so do i only pay tax on the amount my company pays, and not what i pay

[factor-fiction]

Yes, assuming you pay your premiums from your net (after tax) income. So you have already apaid the tax on that money.
You are taxed on the 'benfit in kind' - this is the difference between what the HMRC deems as the value of the benefit after deducting what you pay towards it.

[buildersmate]

Your company is paying £550 to the medical insurer towards your cover and you are paying the rest - £480. That is the most likely simple answer - the cost of the cover in total is £1030.
You have to pay income tax on the £550 figure because it is a benefit in kind.

[northernmonkey]

Photocopy documents with correct £ amount and anything related that will be useful and then present to employer with the request to ensure is sent asap to relevant department via fax for quick delivery and at some point your over paid money will be sent to you and will be something but will not be anytime soon .

[Kakuro1]

I am not sure that you meant to post in this thread, did you northernmonkey? If you did, I think you have misread the situation.

[factor-fiction]

I'm afraid I'm not following that one, northernmonkey. I thought buildersmate, g1057 and I had worked out that this tax treatment seemed to be correct- the benefit in kind that the company gives to HMRC is the value of the company's contribution to g1057's medical insurance. That seems to me to be the correct treatment. Unless we've misunderstood there is no overpaid money and I don't follow what you are suggesting.
Hope City win tomorrow for us.

[northernmonkey]

sorry all I did was glance over Question and seem to have assumed and given an answer of no help ect so please everybody ignore that answer and bue army 5-0