Process Benefit in kind through payroll or P11D?

Kevindurant

The Company's private health insurance with AXA has doubled this year and I've wrongly wasted weeks because someone misinformed me you can salary sacrifice health costs. Why didn't I go to Martin first 

Anyways, the company wants to help employees by paying for 25% of the employee's dependant costs so this applies to anyone who has family and partners on the scheme and who pays for them through their net pay. We pay the premium for direct employees. 

Here is what I don't know,  is it more beneficial to employees if we pay the total cost of the AXA bill, deduct only 75% of their dependant's cost through their net pay and let them pay the tax on the remainder of the 25% via P11D OR it is beneficial they pay the entire 100% via payroll. 

So do P11D items attract NI for instance? 

Any advice much appreciated. The Company is not trying to avoid paying taxes, just wondering how to help the employees in the fairest way. 

Thanks in advance