waiting for our yearly argument with tax credit

dave030445

NYM wrote: »

I'm confused, :think:
Why do you then feel that it shouldn't be included as income for tax credit purposes?

Because it comes under a PHI.
Which is income that is not used for CTC

NYM

dave030445 wrote: »

Because it comes under a PHI.
Which is income that is not used for CTC

Nope...I still don't understand

It's sick pay, for want of a better term and is taxable income (it's your employer that is making the claim on the insurance and not you..)

dave030445

NYM wrote: »

Nope...I still don't understand

It's sick pay, for want of a better term and is taxable income (it's your employer that is making the claim on the insurance and not you..)

Don't you think i know who's making the claim. You seem to be repeating yourself yes it is taxable ive never said it wasn't. But its not the point if its taxable or not.
Its not sick pay is a PHI from my employer as stated on my pay slips

Darksparkle

NYM wrote: »

Nope...I still don't understand

It's sick pay, for want of a better term and is taxable income (it's your employer that is making the claim on the insurance and not you..)

Not all taxable benefits in kind are included for tax credits. No idea why. The list of the ones included is here - https://www.gov.uk/guidance/tax-credits-working-out-income#employer-benefits

However I would have thought this was one would be included as it is sounds like a pecuniary liability rather than private medical insurance/treatment

Icequeen99

Darksparkle wrote: »

Not all taxable benefits in kind are included for tax credits. No idea why. The list of the ones included is here - https://www.gov.uk/guidance/tax-credits-working-out-income#employer-benefits

However I would have thought this was one would be included as it is sounds like a pecuniary liability rather than private medical insurance/treatment

I wouldn't have thought it is a benefit in kind. Normally PHI isn't taxable and the only mention I can find in tax credits legislation is that payments are not treated as investment income unless they are taxable.

OP - have you got a link to anything that says they are disregarded for tax credits? I have only come across cases where they are not taxable and therefore not income for tax credits.

IQ

Darksparkle

Icequeen99 wrote: »

I wouldn't have thought it is a benefit in kind. Normally PHI isn't taxable and the only mention I can find in tax credits legislation is that payments are not treated as investment income unless they are taxable.

OP - have you got a link to anything that says they are disregarded for tax credits? I have only come across cases where they are not taxable and therefore not income for tax credits.

IQ

As far as I am aware, if you arrange PHI yourself then it isn't taxable so not included for tax credits. This is confirmed in the tax credit technical manual as you said.

However this is being provided by the employer, not personally, so the employer met a personal bill which would be a taxable benefit and included for tax credits.

Icequeen99

Darksparkle wrote: »

As far as I am aware, if you arrange PHI yourself then it isn't taxable so not included for tax credits. This is confirmed in the tax credit technical manual as you said.

However this is being provided by the employer, not personally, so the employer met a personal bill which would be a taxable benefit and included for tax credits.

Are you talking about when the premiums were being paid or the payments from the scheme? Even where PHI payments are taxable i'm still not sure they fall under benefits in kind heading.

IQ

NYM

I can only find this from HMRC Section 221

and this PHI/IPI - Taxable?

xylophone

http://www.benefitsandwork.co.uk/forum?view=topic&catid=10&id=85486&start=6#85531

Is the point that if the claimant set up the policy on a personal basis/ paid the premium personally the PHI payments are disregarded for TC purposes but if the policy was provided through/premiums paid by the employer, and the PHI payments are therefore a quasi sick pension, then the payments are taken into account for TC purposes?

dave030445

Tax credits have just confirmed that a PHI comes under a medical payment and therefore not included as income for the purpose of TC. Thanks for all your help