P11D

If an employee, who received Private Health Insurance as a BIK, leaves during the 2022/23 tax year, should the P11D state the pro rata amount of the Private Health Insurance Premium e.g. if he left in June 2022, do I pro rata the annual premium for the amount of time he received the benefit? Similarly, if an employee joins during the tax year, but the Company pays the annual premium for health insurance, do I pro rata the amount of benefit received in the tax year - so if they join in January, and the Company pays the annual premium in January, do I just put the amount of benefit from January until 5 April 2023 on the P11D? Thank you.

Hi
You would record the cost to the employer, so if the provider refunded any of the annual cost you could reduce the benefit but if the employer was charged for the full year that becomes the value for the P11d.
Thankyou.

Thank you. I understand what you have replied re an employee leaving that it depends on whether any of the annual premium is refunded when the employee leaves. Re the second part of my question: if an employee joins during the tax year - in this case in January - the employer has paid the annual premium for the employee's health insurance but obviously only part of it falls in the tax year so should the amount from January to April be calculated on a pro rata basis to ensure the P11D is correct for that particular tax year? Or is the annual premium recorded even though the benefit has only been available to the employee for a few months? Thank you.

Hi,
 

If the employer has paid the full premium and there is no refund to them then that is the liability borne on the employee record  . Thank you.

Sorry - I don't think you are understanding my question. If an employee joins in, say, 1 January 2023 and the employer pays the annual premium for that employee's health insurance of, let us say, £365, what is the amount that should go on the P11D for that employee for the year 2022/23 please? The employee has not received the BIK for the whole of 2022/23 but only for the months of January, February, March and until 5 April, so a total of £95 days. So should the BIK for 2022/23 be £365 divided by 365 days x 95 days? Thank you

Hi
Apologies for any confusion.
If the cost to the employer is £365, that is the value for the P11D.
It is always the cost to the employer, not the length of time the employee can use the benefit. 
Thankyou.

Thank you. That is clear now.