Some medical costs can be paid for by your company but will be a benefit in kind and will incur a tax charge on you personally, whilst others are a tax free perk. With taxable benefits for a company you own 100% it probably isn't worth putting them through the company and you should just pay for them personally instead but you can always check with us to be sure.
Tax Free:
Health checks
An employer can provide an employee with:
- One health screening
- One medical check
Per year.
Conditions
- Health screening must be available to all employees.
- Medical checks must be available to all employees or to those who have been identified for further checks as a result of health screening.
VDU users
Where the employee is required to use a VDU, the employer can provide:
- Eye tests
- Special corrective glasses if these are required as a result of VDU use.
Taxable benefits
- Health insurance
- Medical treatment (unless required as a result of a workplace injury)
- Glasses or contact lenses which are made to a prescription which is unrelated to VDU use.
Tax and NICs
- When an employer contracts for and provides any of these benefits they are taxable for a P11D employee (director or higher paid). The benefit is returned on form P11D, the employer is subject to Class 1A NICs.
- If the employee incurs the cost and is reimbursed by the employer the amount reimbursed is treated as earnings and should be grossed and put through the payroll, subject to PAYE/NICs.
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