Why PHSP? Can it really make a difference?

 Maybe you are a business owner and wondering why you would ever need to consider the PHSP (private health service plan). You have faithfully submitted your medical expenses to your accountant each year to be included in your tax return. You’ve done all you can do… right? Well not exactly.  Let’s look at an example to see how this works.

Let’s say you earn $50,000 a year and accumulate $3000 in family medical expenses. The CRA says that you MUST pay 3% of your income (capped at $1,962) before any tax relief is allowed. So, $50,000 X 3% = $1,500. So you must pay half of your expenses for the year. The remaining $1,500 gets a tax credit at 25%. That means $375 is the resulting tax break! From a $3,000 expense. Hardley effective for or even worthwhile to consider.

How about writing all of those expenses off instead. Would that not make more sense. That’s what a private health services plan can do for you.

Take 5 minutes and check out this report posted by the CBC entitled: PHSP: “The Best Health Plan you have ever heard of?” PHSP – CBC News and think of the money you could start saving by setting one up for yourself. It’s a breeze to get started and it’s all online! 

Just go to www.customcare.ca to read more about it. And when you are ready to get started just click on the “Setup” tab at the top of the screen.