Tax Calculation Premium Costs
As you know, Currencycloud generously pays the costs for all individual Staff who are happy to be included in the Scheme. However, HMRC taxes each individual at their tax rate on the premium paid.
The deductions are operated via your payroll, which means that it is not so straight to see the true costs to you for this valuable benefit. In essence, a basic rate taxpayer saves 32% and a higher rate taxpayer has a saving of 42%.
The calculations are in the table below:
Basic Rate taxpayer: £75 cost from your monthly pay:
| Items: | Amount £ |
| Payslip amount (paid by Currencycloud) | 75.00 |
| Income tax charged 20% | 15.00 |
| National insurance charged 12% | 9.00 |
| Actual cost to you from take-home pay | 24.00 |
Higher Rate taxpayer: £75 cost from your monthly pay:
| Items: | Amount £ |
| Payslip amount (paid by Currencycloud) | 75.00 |
| Income tax charged 40% | 30.00 |
| National insurance charged 2% | 1.50 |
| Actual cost to you from take-home pay | 31.50 |
The Company pays for any Staff who wish to join the Healthcare Scheme and also their Partners and / or Children.
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