Business FAQs

Within this section we have provided answers to some of your most frequently asked questions about the scheme, including paying subscriptions for your employees and the potential tax implications for your employee and your business. These questions and answers are for guidance purposes and we would stress that there is no substitute for taking your own professional advice.


Click on the headings to view the answers.

Q1. I wish to fund the subscription on behalf of my employees. Can I do this?

A1. You can of course do this. There are two ways in which you can do this:

Of course you can do this. The way the scheme operates has been changed so that you can pay for employees’ subscriptions as a benefit in kind, just like a company car. The employee will need to pay income tax on the value of the benefit, which in this case is the value of the subscription.

If you as the employer wish to make this a benefit at no cost to the employee then you will need to increase their salary by the grossed up amount of the tax due from the employee on the benefit provided.

Q2. Can I make the subscription payment direct to onemedifund on behalf of my employee?

A2. Yes, under the new way of operating the scheme employers can make a single monthly direct debit payment for all employees that they have signed up to the scheme. You must ensure that the subscription cost is declared to HMRC for all relevant employees as a benefit in kind so that their tax can be adjusted accordingly.

Q3. If I wish to make this benefit costless to the employee how much do I need to increase their salary by?

A3. This is a complex area – please ask your accountant or payroll provider to calculate the cost to you as an employer to provide enough net pay to cover the tax charge to the employee of the benefit in kind. Remember, because this is a payroll cost you will receive tax relief on the grossed up amount which alleviates the cost to you as the employer.

Q4. If I decide to pay the subscription cost only how much will it cost me and the employee?

A4. The employer pays the monthly subscription cost as detailed on this website at subscription-rates.

The employer will also be liable to pay Class 1A National Insurance contributions based on the value of the subscription – this is currently 13.8% of the benefit provided.

The employee will pay tax on the amount of the subscription at his or her normal tax rate, but will not pay any National Insurance on this amount. An employee is always assessed for tax on the amount of the subscription even if it also includes their spouse or family.

Q5. I am a partner in the family business – how will my onemedifund subscription payments be treated for tax purposes?

A5. As a sole trader or Partner in an unincorporated business, payments made to the scheme directly from the business would be treated as drawings. This is because it is not deemed by the Revenue to be a business expense. This of course differs to the treatment of the payments made on behalf of your employees, which are treated as payroll costs.

Q6. As a director of my own business can I simply get my onemedifund subscriptions paid as a business expense?

A6. Yes, directors can now get their subscriptions paid as a benefit in kind in the same way as other employees.

Q7. Can I move employees between the Gold, Silver and Edge plans?

A7. Yes, but only at the scheme anniversary date (1st August) subject to giving onemedifund notice in writing at least 1 month in advance. When signing up as an employer you are committing to the scheme for a whole year (1st August to 31st July) and this cannot be varied mid-year. If you move from Silver to Gold you will have a 2 month waiting period before you can make a claim. If you move from Silver or Gold to Edge the standard terms and conditions for the Edge plan will apply.

Q8. I have some employees that are already personal subscribers, but would like to put them on the company scheme as a benefit in kind. Can I do this?

A8. Yes, they will be able to cancel their existing subscription, and you can add them onto the company subscription. If you do this, you must be very careful that the employees understand any potential changes in the cover they will get, particularly if they are moving from Gold to Silver or especially the Edge plan.

Q9. What potential implications are there for employees moving from Gold to Silver?

A9. The main thing to be aware of is the difference between the 6 month moratorium under the Gold plan, and medical underwriting under the Silver plan. If a Gold member being treated for a particular condition is moved to a Silver subscription, then they would immediately lose cover under medical underwriting for this pre-existing condition.

Q10. What potential implications are there for employees moving from Gold or Silver to Edge?

A10. The Edge plan ONLY covers private Outpatient treatment to a maximum total benefit allowance of £1000 per person per benefit year.

Q11. What is medical underwriting?

A11. Under the Gold plan, subscribers were required to wait 6 months from their registration date before making any claims. With the Silver plan, medical underwriting applies. Subscribers can begin claiming immediately, but are not covered for any pre-existing conditions they have had during the 5 years before the start date of their registration. This condition is removed once they have been on the scheme for two years.

Q12. If I pay for a Silver subscription for my employees, can they pay the extra themselves to increase their cover to the Gold plan?

A12. Yes. The business will need to pay the full Gold subscription rate, and deduct the extra subscription cost from the employee’s net pay. The value of the benefit in kind will be the subscription paid less the amount paid by the employee.

Q13. Do I, as the employer, need to sign the Deed of Adherence, and why?

A13. Yes, all employers wishing to sign up their employees for onemedifund as a benefit in kind must sign and return a Deed of Adherence. This is a legal document that confirms your participation in the scheme, and confirms that you will abide by the scheme rules and your obligations as a participating employer.

Notes:

Regarding tax treatment for company owners – offered as general guidance by the onemedifund scheme accountants, but not to be relied on as specific advice. As always, please seek specific advice from your own company accountants.