P11d

Moobag

Just doing the P11d's for a company who have Medical and life Insurance, is it just the medical that I need to put on form or both???

NeilH

Hi

Your post prompted me to review our life assurance policy for P11d purposes.

We didn’t include ours on the P11d as there is no perceived benefit in kind (BIK). In can depend on the policy specifics, but in our case the policy is not held in the individuals name (it is in the company's name – in fact it is in the parent company’s name) and any benefits are not paid directly the recipient (it is paid to the company who then carry out its distribution).

This is only a basic description of why our policy is not a BIK, so yours may vary, but this should hopefully give you some pointers.

Neil

Jmann

Agree with Neil's analysis.

Medical P11D Yes

Life insurance : P11D the answer is it depends. You need to ask who is benefiting? Employees or Employer? If the employees are entitled to payout than it is BIK, or If the employers receive the payout than it is not.

John

Londina

sorry, but what is Benefit in Kind? I've never really understand it...thanks

Monsoon

Hi Londina

A BIK is when an employee receives things that aren't cash from them employer. Some poor accountant then has to apply various complicated tax rules to work out the value of the benefit, and the employee then gets taxed on it. The employer has to pay class 1a NIC on it.

BIKs include:

Company cars
Fuel
Computer provided
Medical insurance
Life insurance


E.g. Bob is on a salary of £15,000 a year. His employer pays £300 a year for Bob to have private health insurance.

Bob has to pay tax on £15,300.
Assuming a tax rate of 20%, Bob effectively pays only £60 (20% of £300) for his health insurance.

If Bob pays his employer £100 towards the cost, Bob will be taxed on £200 (£300-£100) as a Benefit in Kind.

BIKS are usually reported on form P11D.

It can all get very complicated very quickly hence my very simplistic example!