Benefit in Kind - what tax rate?
Benefit in Kind - what tax rate?
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Discussion

Mr Gearchange

Original Poster:

5,892 posts

236 months

Wednesday 12th March 2014
quotequote all
Hello chaps,
It the time of year that I need to make my selections for what company benefits I want to enrol for during the coming year.

I'm lucky enough to have lots of options available to me including health cover, dental cover, life insurance, critical injury, spousal life insurance etc.

There is a handy calculator which tells me what the taxable benefit is of these options so I can see what my exposure is tax wise.

So stupid but important question. At what rate are these benefits taxed? I'm lucky enough to be a higher rate tax payer so am I going to be paying 40% of the taxable benefit for having these things?

What happens if I earn enough to get into the 45% bracket? Would I then get another bill after I do my SA for an additional 5% on all the benefits I took?

Thanks

Edited by Mr Gearchange on Wednesday 12th March 16:59

Eric Mc

125,784 posts

295 months

Wednesday 12th March 2014
quotequote all
Yes.

Mr Gearchange

Original Poster:

5,892 posts

236 months

Wednesday 12th March 2014
quotequote all
Thanks Eric.

Getting a 55% discount on things I don't particulary want doesn't seem that appealing.

Think I will just go for the personal health cover as I will doubtless fall off my bike numerous times this year - so it's worth having for the physio..