The help?

[spudtater]

I've been sent an "Application for Private Medical Scheme" form by my soon-to-be employer. However, there's one thing I can't make heads or tails of:

"Employee cover: No cost but Taxable Benefit cost is £395 per annum"

What's that when it's at home, then? Will they be taking money off me, or won't they?

Comments

[bassresistance.livejournal.com]

You won't be charged for it, but it will increase the amount of tax you have to pay... I think.

linky

[bassresistance.livejournal.com]

Yup, your income tax would be calculated as if you earned £395pa more than your salary. Fun!

[sqferryman.livejournal.com]

It's the value of the benefit that the Revenue use to calculate how much tax you pay. So you don't pay for the benefit, you pay tax as though you had been given that amount of cash as salary.

[spudtater.livejournal.com]

Aha! Thanks. This is all reasonable and logical and stuff now.