Refunds and repayments of tax during COVID-19

Refund of healthcare insurance premiums

Due to COVID-19 some private healthcare providers may issue a refund of medical insurance premiums to an:

  • employer
  • employee
  • individual policy holder who has personally paid for the policy.

Tax Relief at Source (TRS) is ignored for the purposes of the below. The usual claim procedures apply for an employee and employer's accounting for the value of the TRS amount to Revenue.

Employer paid premiums

Refunds made to the employer

Where the employer receives a refund of the medical insurance premium the:

  • amount subject to Benefit-in-kind (BIK) is reduced to reflect the new gross value of the insurance policy
  • employer is entitled to a Schedule D Case I/II deduction in line with the reduced policy amount.

Refund split between the employer and the employee

Where the refund of the medical insurance premium is split between the employer and the employee:

  • the amount subject to BIK is reduced to reflect the new gross value of the insurance policy
  • any refund made to the employee is subject to BIK.

The employer is entitled to a Schedule D Case I/II deduction to reflect the reduced policy amount Payment of premium by an individual policy holder.

Payment of premium by an individual policy holder

Where the medical insurance premium refund is made to an individual policy holder the refund is not subject to tax.