Health plan

Blonde Accountant

Hi, a company that I do the wages for have just told me that from this month they are going to have a healthcare plan-half paid for by the employer and half by the employee. Lots of people have been telling me different things about the tax, so I need some confirmation please. Does the company have to inform the tax office that they are starting this as it is a benefit, or is it down to the individual employees? Also, when I add the deduction on Sage for the wages, will it be a pre or post tax deduction?

Many thanks

Nicola

Blonde Accountant

Well thanks everyone for at least looking. I'll ring the tax office tomorrow and let you know what they say.

Bluewednesday

It depends on the health plan, assuming it is a taxable benefit then it will be on sage as a post tax adjustment and will be reported to HMRC on the P11d's at the end of the year. I don't believe it has to be notified in year but I am willing to be corrected if wrong

groundy

The benefit of reporting in the year is that HMRC can correct the coding notice's of employees in the current year rather than incur a tax charge which would be adjusted on future PAYE codings. All depends on the values whether it is worth while.

Bluewednesday

Maybe it's the materiality as we've only ever done it with cars!