Benefit in Kind for Spouse

Discussion in 'Accounts & Finance' started by rlellie14, Mar 19, 2019.

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  1. rlellie14

    rlellie14 UKBF Newcomer Free Member

    21 0
    Hi. The wife of a director has been added to the Company's Health Insurance plan. She is NOT an employee. Any idea how I am meant to deal with this from a tax point of view?
    - is it a benefit in kind chargeable against the director (is this allowed considering she is not an employee?)
    or
    - Do I insist on the company being reimbursed? (reduce Directors monthly salary or ask her to reimburse the company)
    or
    - Another solution?!

    Thanks!
     
    Posted: Mar 19, 2019 By: rlellie14 Member since: Oct 24, 2011
    #1
  2. Paul Norman

    Paul Norman UKBF Ace Free Member

    3,286 1,079
    At a company for which I used to work, I received health cover that included my wife and children. This was treated as a taxable benefit in kind for myself, upon which I paid tax - which seemed fair to me.

    That would be my assumption here, too. You declare it as a BIK, the director's tax code will change.
     
    Posted: Mar 19, 2019 By: Paul Norman Member since: Apr 8, 2010
    #2
  3. TheCyclingProgrammer

    TheCyclingProgrammer UKBF Regular Free Member

    1,239 251
    From the HMRC expenses and benefits guide:

    Benefits provided for the family or household of an employee

    1.13

    Subject to minor exceptions any benefit provided for the members of the family or household of an employee ranks as if it were provided for the employee personally. The term family or household covers the employee’s: • spouse

    • children and their spouses
    • parents
    • servants, dependants and guests • registered civil partner

    Where benefits are provided in connection with loans and share incentive schemes there are different definitions of the family circle. For beneficial loan arrangements see paragraph 17.10.
    This would also apply to directors.
     
    Posted: Mar 19, 2019 By: TheCyclingProgrammer Member since: Jul 15, 2014
    #3
  4. FD Capital

    FD Capital UKBF Contributor Full Member

    47 8
    Yes the benefit exists because the Director is employed the benefit therefore falls on him
     
    Posted: Mar 19, 2019 By: FD Capital Member since: Mar 4, 2019
    #4
  5. rlellie14

    rlellie14 UKBF Newcomer Free Member

    21 0
    great, many thanks for the replies!
     
    Posted: Mar 19, 2019 By: rlellie14 Member since: Oct 24, 2011
    #5
  6. JCresswellTax

    JCresswellTax UKBF Regular Free Member

    115 8
    This is literally the perfect thread. Congrats guys!
     
    Posted: Mar 22, 2019 By: JCresswellTax Member since: Dec 11, 2017
    #6
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