The cost paid by Homeprotect for your own individual cover in the Scheme is a taxable benefit under HMRC rules.
This means that a small tax charge, equivalent to the tax rate you pay as a percentage of the monthly premium with AXA has to be charged within the payroll calculations.
This tax charge is usually annually in arrears, due to the way that HMRC payroll tax rules work. Therefore, the membership cost is in the current tax year will be notified at year-end via payroll to HMRC and your tax code adjusted for the following year.
Example tax costs
Example medical insurance premium of £35 monthly
To 20% taxpayer the tax costs is £7.00 monthly
To 40% taxpayer the tax costs is £14.00 monthly
Where you cover the cost of a family member, there is no tax charge as you are paying out of your after tax pay in any event.
Please be aware that we are unable to confirm the taxation costs as this is linked to your tax code and determined by the HMRC.
Back to Your Fintilect Healthcare Page
