mwebco24

I appear to be confused by a BIK calculation. I receive private medical insurance benefit from my employer and understand this is taxable at the higher rate of income tax that I pay. HMRC have added the value of my medical insurance to my taxable earnings which has reduced my personal allowance (I am earning over 100k). This has the effect of a 20% tax being applied to that benefit (since my personal allowance is reduced by 50p in every £1 above the £100k threshold). Additionally, HMRC have further reduced my personal allowance by the value of my medical insurance benefit. This has the effect of applying a further 40% tax to my medical benefit, so 60% in total. I spoke to HMRC about this and they didn't do a good job of explaining it - other than to say 'the calculation is correct'! I am aware of the 60% tax trap between £100k and £125k - but hadn't realised this is applicable to BIK as well. Does this all seem correct?