Hi,

We offer our employees Private Healthcare cover where they can opt to add family members.  We cover the cost of employees only and the additional family premium is deducted from monthly salary before TAX and NI.

When completing the P11D, I would account for the benefit costs as follows:

Cost to you or amount foregone £ 100.00 (amount paid by company)

Amount made good or from which tax deducted £ 50.00 (amount deducted from salary)

Cash equivalent or relevant amount (Class 1A NIC) £ 50.00 (amount used to calculate class 1A on P11D)

Is this correct or does this mean our employees are not paying the correct tax?  And has the company paid the correct NI?

Thanks in advance