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Benefit in kind increases income?

I currently claim tax credits and my work are looking to introduce health insurance as a benefit in kind. I read this has to be classed as additional income when claiming tax credits but if my contribution is done via a p11d/tax code then it might not affect my tax credits. 
I'm getting very confused and can't seem to find a straight answer. Can anyone help?
Sealed pot challenge 13 #068 :)

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  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 19,323 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    edited 23 June 2023 at 11:19PM
    Loopylucy said:
    I currently claim tax credits and my work are looking to introduce health insurance as a benefit in kind. I read this has to be classed as additional income when claiming tax credits but if my contribution is done via a p11d/tax code then it might not affect my tax credits. 
    I'm getting very confused and can't seem to find a straight answer. Can anyone help?
    That makes no difference whatsoever.

    Say your benefits are put through payroll (payrolling BIK) and your taxable salary is £15k plus payrolled health insurance benefits of £1k then your P60 would show taxable income of £16k.

    But if the benefits aren't payrolled and are reported via P11D then you would still have taxable income of £16k.  P60 pay would just be £15k plus P11D BIK £1k = £16k.

    https://www.gov.uk/claim-tax-credits/what-counts-as-income
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