Hello - I am looking for advice on eligible salary sacrifice schemes for employees contributing to their private medical insurance benefit.
The company is paying for the individual single premium as a benefit in kind.
However, employees can choose enhanced cover for partners and families, which the employee will then pay for through payroll deductions. My understanding in this scenario is that this contribution to medical cover is not an effective salary sacrifice scheme eligible for tax and NI savings, and should instead be set up as net deduction rather than as gross deduction.
However where processed as a gross deduction, I understand the contribution would be reportable via P11D to incur the tax liability.
Would it be possible to get confirmation on this scenario as there seem various company practices dealing with this in different ways.