P11D healthcare benefits

[koster]

My company has offered me membership of a healthcare scheme.

The benefits (medical and dental) would be free but I would have to pay income tax on them.

The annual costs of these benefits would be £510 (medical) and £53 (dental).

How I can calculate the amount of income tax I would pay on the benefits if I accepted membership of the scheme?

[mccfluff]

according to hmrc

How HMRC deals with a company benefit in your tax code

HMRC adds the value of the benefit to any other untaxed income you have and takes away the total amount of income you've not paid tax on from the total value of your allowances and reliefs. The amount you're left with is the tax-free income you are allowed to receive in the current tax year.
Example

You are entitled to the basic Personal Allowance of £7,475 (the amount for the 2011-12 tax year) and your employer has provided you with private medical insurance worth £600:

your total allowances and reliefs are £7,475 (your Personal Allowance)
your total 'deductions' are £600 (the value of your medical insurance benefit)
your total tax-free amount is £6,875 (£7,475 less £600)

So, you have tax-free income of £6,875 and your tax code is 687L.

HMRC will usually send you a 'PAYE Coding Notice' that explains exactly how they have dealt with the benefit in your tax code.

so the rest of your wage will be taxable at either 20 or 40%
http://www.hmrc.gov.u...-company-benefits.htm

[koster]

Thanks Mccfluff. So basically, as I'm on basic rate income tax (20%), if I accept membership of the healthcare scheme, the extra amount of income tax will be 20% of £563 per year, or £112.60, so my take-home pay will be £9.38 less per month. Is that right?

Or if I accepted only the dental benefit this would cost me £10.60 per year, which would be worth it, because even if I claimed back one NHS dental checkup per year (£17), I would make a 'profit' of £6.40.

[mccfluff]

well what ever your wage is after the tax free amount would be charge at 20%

so if you get £20k your tax free amount assuming you take both benefits would be £6912.00 so the taxable amount @ 20% is 13088.00 = £2617.60

you can use this site just put -563 in the deductions box
http://www.uktaxcalculators.co.uk/

[factor-fiction]

Depends on your marginal rate of tax. If it's 20% then you'll pay tax at 20% on £563, so that's £112.60 pa (done in my head so I hope it's right)

[factor-fiction]

Sorry- I didn't see the other answers- they don't appear on my screen any more unless I tab down to look