Am I liable for tax on all of the premium?

My company healthcare policy includes travel and medical cover for business; I travel extensively and am out of the country for approx. 4 months of the year. Surely I should not be paying tax on the whole premium, as a percentage is the company’s liability and should not be classed as a ‘benefit’.

Question asked by Alison Walker
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Answered by Tom Conner

Hi Alison,

Thanks for your question. Unfortunately we are not tax advisers and cannot therefore provide any advice on this. It’s worth asking you accountant who should be able to help further.

The one point I would make is that company paid medical and travel insurance policies usually form a P11D benefit (i.e. a benefit in kind) because the company is paying for this benefit on your behalf rather than you paying for it from your after tax income.

If the premium wasn’t added to your income for tax purposes and you needed to claim it is possible that the HMRC would ask for tax to be paid on the claim amount, which could be huge!

Sorry we are not able to be of more help.

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