Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


Are there tax breaks for business health insurance?

Providing your employees with comprehensive health insurance benefits helps to attract and retain top talent, but it also works to keep your employees healthy and productive. In the United Kingdom, there is some tax relief available for employers who provide health insurance for their employees, which can help to make these employee benefits more affordable.

In this article, we will discuss the specifics of the tax relief available for business health insurance in the UK, and how you can take advantage of this to provide your employees with the best possible benefits. We will also give an overview on what types of health insurance are covered by the relief, so you can make sure that you are getting the most from your benefits package.

How does health insurance affect my taxes?

HMRC taxes you differently depending on whether your health insurance plan is a personal policy, or a group health insurance policy taken out by the company you work for. Personal policies are exempt from tax, but employees receiving health insurance provided by their companies may have to pay tax.

According to MediCompare, directors or owners of unincorporated companies (sole traders or people in partnerships, for example) are able to deduct the cost of their employees’ health insurance from the business’s taxable profits.

If a company provides financial support towards medical insurance for employees, this is regarded as a ‘benefit in kind’ and the employee must pay personal tax on it. However, the health insurance they take out for themselves is classed as a personal expenditure and is not eligible for tax relief.

Every year, employers submit ‘P11D’ forms to the HMRC, which details the end-of-year expenses and benefits of the company. On top of this, a P11D(b) form is submitted which details the amount of Class 1A National Insurance is due on the expenses and benefits given to employees. If an employee earns over £8500 in that year, they owe tax on the amount of the benefit they received.

What Is a P11D form?

Also known as the P11D expenses and benefit form, this is a form issued by HMRC. Employers submit this form at the end of the tax year for every employee that received benefits (such as health insurance) on top of their income.

What tax-free medical benefits can employees get in the UK?

In the UK, employees may be able to get the following tax-free medical benefits:

  • Health screenings
  • Vision check-ups (for computer desk workers)
  • Insurance for expats

Is private health insurance a good investment for business?

Private health insurance can be an alluring perk for potential employees during the hiring process. It could provide a top-level incentive to attract the highest level of talent to your company both due to the financial benefit of not paying for healthcare, and also for the emotional benefit of knowing their employer cares about their wellbeing.

Healthier employees are also more likely to be productive. Improved health results in less time off work. Even with health concerns that are not too severe, getting them checked out and addressed will mean your employees can spend less time worrying about their health.

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts