Will the premiums paid by Vicki's employer for her income protection insurance be considered a benefit in kind?

The premiums paid by Vicki's employer for her income protection insurance are not considered a benefit in kind because they are not subject to tax. This type of insurance typically offers income replacement in the event that an employee cannot work due to illness or injury. When an employer pays for this coverage, it generally does not count as a taxable benefit for the employee.

This treatment is due to the fact that income protection insurance premiums paid by an employer are classified differently from other employee benefits. In the context of tax regulations, such payments are viewed as a form of remuneration that provides financial security rather than as direct compensation that would be taxed as a benefit. Therefore, Vicki will not have to pay tax on these premiums, reinforcing the idea that they are not considered a benefit in kind for tax purposes.