This is great way of looking out for your team and showing you care and value their wellbeing, after all good businesspeople think customers are top priority, whereas the best business minds know it’s their employees who look after the customers.
Health insurance is available from a range of providers and covers a multitude of things. Common things covered are dental, optical as well as medical.
Some services offer refunds on the cost incurred by the user of the medical policy, and can also cover their immediate family, while others will provide the medical care themselves.
As a business owner with employees, this is a fantastic way of showing you care which may in turn provide greater appreciation levels from employees, and potentially help you create an environment where people want to work.
Some of the main providers to start your search are:
This expense is tax deductible for the business; however you will need to keep in mind that it creates a taxable benefit on the employee, also known as a Benefit In Kind.
For example, if the health insurance cost the business £100 for the year, then once HMRC are aware of this they will ensure the employee pays tax on this £100 value by adjusting the employees tax code. This ensures that the employee pays tax on their normal wage or salary, as well as tax on this extra benefit that HMRC sees as an extension to a wage or salary.
You also need to be aware that Employers National Insurance will be due on this £100 too. This is covered in our P11d Benefits in Kind guide.
Further information on this benefit can be found at gov.uk, or you want a more down to earth summary, feel free to get in touch.
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