Health plan

Blonde Accountant
Blonde Accountant Registered Posts: 86 Regular contributor ⭐ ? ⭐
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

Comments

  • Blonde Accountant
    Blonde Accountant Registered Posts: 86 Regular contributor ⭐ ? ⭐
    Well thanks everyone for at least looking. I'll ring the tax office tomorrow and let you know what they say.
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624
    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
    groundy Registered Posts: 495
    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
    Bluewednesday Registered Posts: 1,624
    Maybe it's the materiality as we've only ever done it with cars!
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