In simple terms
Status: HMRC interim guidanceEnter the annual taxable value, when the benefit is available, how often the employee is paid and any amount already included. The calculator derives an illustrative allocation for each remaining payroll. Any employee tax or employer National Insurance figure is only an illustration, not a full payroll calculation.
2027/28 provisional illustration
Private medical insurance
A taxable benefit affects PAYE but does not increase the employee’s cash pay.
Annual taxable benefit value
Each remaining payroll
Illustrative employee tax
At the selected 20% marginal rate
Illustrative annual Class 1A
The employee does not receive an extra £100.00. This is a taxable benefit value used when calculating Income Tax.
Calculation
1200.00 ÷ 12 remaining pay periods = £100.00
- • Uses 12 remaining pay periods (12 total selected).
- • Employee tax is an illustration using the marginal rate entered, not a PAYE calculation.
- • No 2027/28 Class 1A rate has been assumed; enter a rate only for scenario planning.
Rules 2027-provisional-v1 · Reporting 2027-draft-rti-2026-07-31
What this means
£100.00 of taxable benefit in each remaining payroll
An annual private medical insurance value of £1,200.00, with £0.00 already included and 12 payrolls remaining, would be spread at approximately £100.00 per payroll. At an illustrative 20% marginal rate, that represents approximately £20.00 of Income Tax per payroll attributable to the benefit.
Illustrative schedule
How the remaining value could be spread
The final payroll reconciles penny rounding so the schedule matches the remaining annual value.
| Payroll | Benefit value | Illustrative tax | Benefit YTD |
|---|---|---|---|
| Remaining payroll 1 | £100.00 | £20.00 | £100.00 |
| Remaining payroll 2 | £100.00 | £20.00 | £200.00 |
| Remaining payroll 3 | £100.00 | £20.00 | £300.00 |
| Remaining payroll 12 | £100.00 | £20.00 | £1,200.00 |
Show all 12 payrolls
| Payroll | Benefit value | Illustrative tax | Benefit YTD |
|---|---|---|---|
| Remaining payroll 1 | £100.00 | £20.00 | £100.00 |
| Remaining payroll 2 | £100.00 | £20.00 | £200.00 |
| Remaining payroll 3 | £100.00 | £20.00 | £300.00 |
| Remaining payroll 4 | £100.00 | £20.00 | £400.00 |
| Remaining payroll 5 | £100.00 | £20.00 | £500.00 |
| Remaining payroll 6 | £100.00 | £20.00 | £600.00 |
| Remaining payroll 7 | £100.00 | £20.00 | £700.00 |
| Remaining payroll 8 | £100.00 | £20.00 | £800.00 |
| Remaining payroll 9 | £100.00 | £20.00 | £900.00 |
| Remaining payroll 10 | £100.00 | £20.00 | £1,000.00 |
| Remaining payroll 11 | £100.00 | £20.00 | £1,100.00 |
| Remaining payroll 12 | £100.00 | £20.00 | £1,200.00 |
How it works
How this tool works
The calculator starts with the annual value, subtracts anything already included in payroll and divides what remains across the pay periods left in the year.
Use the taxable annual value supplied by your provider, adviser or benefit calculation. If you are unsure of that value, confirm it before relying on the result.
Illustrative four-weekly change
A fictional benefit changes to £2,800 after six of 13 four-weekly payrolls. £1,200 has already been payrolled, leaving £1,600 across seven periods. The final period must reconcile any penny rounding.
(£2,800 − £1,200) ÷ 7 = £228.57
Result: Approximately £228.57 for each remaining period
