calculating income for Tax Credits

Enigmaman

I was just wondering how much additional income you ae entitled to when calculating tax Credits before HMRC starts reducing payments. 

e.g. I received under £300 in interest and dividend income last tax year, plus over £300 in cash benefits from my health insurance policy (which I declared in my Self Assessment form).

So, I presume HMRC will add together income from self-employment + dividends/interest + cash benefit to calculate my income.

Is this correct?

And Should I knock off £300 or not?  

Yamor

In general, the cash benefits received from such a plan are not taxable, nor income for tax credits.

At most, the premium paid for the plan would be a benefit in kind.

Who has taken out the health insurance policy for you?

Enigmaman

I took out the policy.

Are you sure the benefit is not taxable? I declared it as the insurance company  said I should.I 

Yamor

I would look into it again, as the cash payments are not normally taxable.

Enigmaman

Thankyou.

I am not overly bothered about the Self Assessment die of things as it should make no difference to the tax I pay (i.e. none).