Anyone upto speed with how benefits effect your tax code?
I've started at a new place and I'm now elligible for the private health insurance and pension etc etc
I asked about cost of the medical cover this morning and was told that it wasn't a straight deduction from my wages like my pension etc but would change my tax code.
Now if I round the number up here, am I on the right path?
If e.g my tax code was 450x this would mean I'm allowed £4500 before paying tax at the standard rate. So if my Health Care cover was a £500 benefit, then my taxcode would go to 400x for example, so I have to start paying tax after £4000 instead?
So the actual cost to me would be whatever tax I'd pay on that £500 now? e.g if tax and NI is about 25% then I'd only see a drop of £125 in my yearly wage? Which is nothing. Is that too good to be true or is it going to cost me boatloads?
I've started at a new place and I'm now elligible for the private health insurance and pension etc etc
I asked about cost of the medical cover this morning and was told that it wasn't a straight deduction from my wages like my pension etc but would change my tax code.
Now if I round the number up here, am I on the right path?
If e.g my tax code was 450x this would mean I'm allowed £4500 before paying tax at the standard rate. So if my Health Care cover was a £500 benefit, then my taxcode would go to 400x for example, so I have to start paying tax after £4000 instead?
So the actual cost to me would be whatever tax I'd pay on that £500 now? e.g if tax and NI is about 25% then I'd only see a drop of £125 in my yearly wage? Which is nothing. Is that too good to be true or is it going to cost me boatloads?
