Benefit in kind increases income?

Loopylucy
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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?
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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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?
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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