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Tax relief at source changes for employer - Jan 1, 2024
Tax relief at source changes for employer - Jan 1, 2024
Aine Kavanagh avatar
Written by Aine Kavanagh
Updated over a week ago

Irish Life Health offer members a wide range of benefits to help them proactively manage their health and wellbeing. Following a review completed by Revenue, **some** of these benefits have been deemed no longer eligible for tax relief, so the tax relief at source rate (TRS) for Irish Life Health customers is reducing from 20% to 19%. This means that some customers will see a slight increase in their premium, from 1st January 2024 for new and renewing policies. For employers, this means they will now pay 81% of the gross premium to Irish Life Health and 19% to revenue, instead of the current 80/20 split.

I have an existing policy – how am I affected?

If your policy is due to renew before 1st Jan 2024, there is no change. If a member is added to the policy after this date, their TRS will be 19%.

If your policy renews after 1st Jan 2024, your tax relief at source will now be 19%.

How much more am I paying as a result of this?

It depends on how much your plan costs. There’s a €1,000 cap on TRS for adult premium – this cap is not changing. If your plan is eligible for the full entitlement, the tax relief at source will now be €190 (at 19%) versus €200 (at 20%). The additional cost to you in the coming year, will be no more than €10 per adult (1%).

For child premium, the cap is €500. The Tax relief at source will now be €95 (at 19%) versus €100 (at 20%). The additional cost to you in the coming year, will be no more than €5 (1%).

Why is the rate lower for ILH than for VHI?

The TRS rate is assessed on a company-by-company basis by Revenue, so we don’t have any information on the process with VHI.

The Revenue website says the rate is 20%, not 19%?

We understand that there are a few areas that make reference to the 20% such as revenue.ie. That information will be updated in due course by the owners of that content. Irish Life Health will have all references for our customers updated on 1st Jan 2024.

Will the rate return to 20% in future?

The TRS rate is reviewed annually by Revenue and therefore subject to change.

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