Tax Tips

Could you be due tax back on your health insurance?

Are you one of the estimated 400,000 people in Ireland that have health insurance fully or partially paid for by their employers? Did you know that you may be eligible to claim tax back on such health insurance schemes?

Many people in Ireland assume that where health insurance is paid or part-paid by an employer, they are not eligible to claim tax relief and are leaving hundreds of euro in unclaimed tax credits on the table every year.

tax back on company health insurance

How is tax relief applied to health insurance?

Those who privately purchase individual health insurance policies will automatically get tax relief on their premiums through a system called Tax Relief at Source or TRS. This system reduces the premium owed by the amount of tax relief due upfront, so eligible consumers need not independently claim the tax relief.

However, where an employee has their health insurance paid or part-paid by their employer, they will not have not have fully benefited from the TRS arising on the medical insurance premium paid by the employer.

Employees who participate in group health insurance schemes at work are charged benefit-in-kind (BIK) with income tax, pay-related social insurance (PRSI) and universal social insurance (USC) being taxed on the gross value of the cover.

How much tax relief can I claim?

The amount of tax relief eligible that employees will receive depends on the specifics of their insurance cover and premium. Revenue provides several sample scenarios online and Irish Tax Rebates can help explain individual situations.

In general, TRS is calculated at 20% of the gross premium.  From 2014, this 20% calculation is limited to €1,000 per adult and €500 per child.

Can I claim tax back for health insurance ?

If you were eligible to claim tax relief on employer paid or part paid health insurance in the past but have never done so, you’re in luck. As with claiming tax back on medical expenses, taxpayers can file claims for the past four years to ensure they receive the tax relief they are owed.

Generally the tax back is approximately 20% of the gross amount paid by the employer (capped at €1,000 per adult and €500 per child from 2014 onwards). Depending on an employee’s family circumstances and coverage, the tax back due can be substantial.

Are you owed tax relief on your health insurance cover?

Irish Tax Rebates has helped thousands of people in Ireland to claim tax back on health insurance schemes paid or part paid by their employer. If you have questions about your eligibility or need help getting your tax back, feel free to contact our expert team for advice and assistance.

Drop us an e-mail to info@irishtaxrebates.ie or call our office directly on 059 8634 794. Ready to claim tax back? Apply Online to get started.