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2026/27 Tax YearHMRC Rates

Medical Insurance Tax Calculator

Calculate the tax on private medical insurance provided by your employer. Understand the benefit in kind implications and your effective cost.

HMRC Compliant
Updated May 2026
P11D Benefit
Insurance Details
Enter your medical insurance details

The full annual premium paid by your employer

Annual Tax on Benefit
£240

£20 per month via PAYE

Benefit Analysis
Benefit in Kind Value£1,200
Your Tax Rate20%
Tax Payable£240
If You Paid Yourself£1,200
Your Net Benefit£960
Employer Costs
Premium Cost£1,200
Class 1A NI (13.8%)£166
Total Employer Cost£1,366
How Medical Insurance Tax Works

When your employer provides private medical insurance, it is treated as a Benefit in Kind (BiK). The full premium value is added to your taxable income, meaning you pay income tax on this benefit.

The benefit is reported on your P11D form and the tax is typically collected through your PAYE tax code, spreading the cost across the tax year.

Family cover: If your employer extends the cover to your spouse or dependents, the full premium (including their cover) is taxable as your benefit.

Is it worth it? Even after tax, employer-provided medical insurance is usually cheaper than buying it yourself, as employers often get group discounts.