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Company medical insurance and tax

(3 Posts)
thereinmadnesslies Thu 15-Sep-11 22:44:30

I get medical insurance through work. I've always understood that I paid slightly more tax in each payslip to cover the cost of the benefit, e.g there's a line in the credits part of the payslip saying that healthcare is £30, and I pay tax on that £30.

I've just received a coding notice adjusting my tax code to reflect that I get the benefit of healthcare. Does this mean I'm now paying twice?

AMumInScotland Fri 16-Sep-11 12:10:56

The tax coding just reflects the fact that you have an extra £30 of income on which tax must be paid. That's how they take the tax off you - you're not paying it twice, they're just describing it in slightly different ways on the two pieces of paper.

CogitoErgoSometimes Fri 16-Sep-11 13:41:47

If you're given £360/worth of healthcare insurance per year, your tax-code is adjusted to reflect that you receive a benefit. Then that new tax-code is applied to your salary. The benefit will appear on your P60 at the end of the year. Do you return an annual self-assessment?

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