Company medical insurance payout

Hi, An employee who was signed off unfit to work, was paid a certain percentage of his salary under the medical insurance cover of the company. I understand he is taxed as normal under PAYE. The company is being bought out (MBO) and he will soon be paid directly by the insurer. How is the income treated going forward as he is no longer an employee? Is it still taxable? What type of income will it be classified as, insurance payout? Thanks, Osman

Hi 

Yes it is still taxable as the benefit was paid for by the company.
The insurer should provide details to the individual for them to make a claim each tax year if applicable.

Thank you