Tax Year 2010-2011

[cas42]

Employee pays for own medical insurance at a cost of £600. How do I calculate how much benefit in kind they receive? Thanks for any advice.

[mike11111]

If he pays for his own medical insurance he is not receiving ANY benefit in kind. That would only apply if his employer paid for it.

[cassa333]

That's what I thought as well Mike11111.

[cas42]

Thanks mike11111 - I hadn't thought of it like that. I was looking into it too deep!!!

[buildersmate]

Presumably the only (logical) reason why an employer might do this is to enable the employee to benefit from volume purchase of medical insurance for lots of staff at discounted prices.

[kinell]

watch out for the benefit in kind police..

my golf pal works for a very very very large financial institution and uses the dartford crossing regularly for which he has a (company) dart tag which costs £1 instead of the usual £1.50

being squeaky when it comes to expenses claims after using the tag for two personal crossings he amended his expenses claim down by £2 in respect of this personal use

some jobsworth comes back to him and says that by using the tag and repaying the £2 he has incurred benefits in kind of £1 (2x 50p) and in due course will be taxed accordingly

people like this are happy in their petty little world