How tax affects company paid healthcare for large employers

The factsheet includes case studies for private medical insurance, health cash plans and healthcare trusts.

It explains the implications for both employers and employees of several different taxes – including the Insurance Premium Tax (IPT), National Insurance Contributions (NIC), Income Tax (IT), Corporation Tax (CT) and Value Added Tax (VAT).

The health insurance provider has also published a series of free online resources, including a similar guide for SMEs.

The guide includes examples showing how certain taxes would apply to private medical insurance and health cash plans.

Simplyhealth head of business marketing Howard Hughes said that the leaflet covered mechanisms which are particularly relevant to large companies, such as health care trusts.

He commented: “It is a more tax efficient way of providing the health care benefits that you would need to offer as an employer. It suits larger companies and it is true to say that not every large company has a healthcare trust or they may not have fully explored it.”