Tax Payable On Permanent Health Insurance (PHI)

[Chart Accountancy]

In order to avoid any confusions, PHI will always be taxable and reportable on a P11D. If it is any other insurance then yes it will need to be looked at who is the beneficiary set up on the insurance.

[WordIsBond]

Part of the confusion comes from labels.

"PHI" usually refers to insurance that will pay for you to have medical care provided on a private basis. As stated, that is always taxable as a benefit in kind.

But both the OP and the person who resurrected the thread were talking about income being paid in the case of sickness. That's not what people usually mean by "PHI" even though PHI is in the thread title.

[SueEllen]

Part of the confusion comes from labels.

"PHI" usually refers to insurance that will pay for you to have medical care provided on a private basis. As stated, that is always taxable as a benefit in kind.

But both the OP and the person who resurrected the thread were talking about income being paid in the case of sickness. That's not what people usually mean by "PHI" even though PHI is in the thread title.

I've always understood PHI being what the OP and the person who resurrected the thread mean it to be.

Other insurance - the type that pays out for private healthcare is called "private medical insurance" - or "private healthcare insurance" or "private health insurance". The latter have the same initials but on this forum (and those who work in insurance) make the distinction.

[Chart Accountancy]

I've always understood PHI being what the OP and the person who resurrected the thread mean it to be.

Other insurance - the type that pays out for private healthcare is called "private medical insurance" - or "private healthcare insurance" or "private health insurance". The latter have the same initials but on this forum (and those who work in insurance) make the distinction.

This is true, I have been referring to medical/private healthcare which is always taxable benefit. The OP and Jessica have referred to 'sick pay out' insurance where it matters who is the beneficiary of the policy hence the confusion. Hopefully, this clarifies and for others reading this thread. Some of the IFA arranging insurances are quite good in advising on setting up insurances in mind with avoiding BIK where possible if this is what is aimed.