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slimjim | 09:35 Fri 28th May 2004 | How it Works
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How does this work? I pay National Insurance (which isn't cheap these days). My dentist recently annouced that he has stopped NHS treatment. There are no others in my area who will take on new patients. So I arrange through my employer to have dental insurance. I pay for it out of my salary but presumably at preferential rates. This is taxed as a benefit in kind! So I pay national insurance for NHS dentistry that I can't use and I'm taxed on having private medical insurance! It's the same for normal medical insurance but I can't really complain about that as I know I have a choice (though it does bug me that by choosing to opt of NHS hospital care and arranging my own medical insurance, I get taxed on that too and yet still pay full NI contributions).
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and there endeth lesson 1 in Capitalism. What gripes me is that they tax your earnings all your life, then when you die they tax your life's earnings (inheritance tax) which were taxed in the first place. Life sucks sometimes...
and don't forget your employer will also pay employers national insurance on the benefit in kind! The NHS dentist situation is not good, but the NI contributions that you pay do still entitle you to more benefits and health care than are available in most other countries.
....And you are taxed on your earnings.....and then on just about everything you buy with your earnings.
Exactly rinkytink. As part of my work I incurred just over �100 in expenses (train & hotel) on a recent trip. When I claimed them back they were taxed!
Gef - reimbursed expenses that were incurred wholly, exclusively and necessarily for your job are not normally taxable - keep your receipts and you can claim the tax back at the end of the tax year.
Thanks for that kags, I will look into it. Scottish teachers are only taxed on their expenses if they are "high earners", ie more than �8500 per annum - what a laugh.
It doesn't.....
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