How can Relevant Life Insurance help your business?
As a salaried Company Director, you can pay for life cover, death in service, through your business as a business expense. The benefit of this is that you will save tax and National Insurance on the premiums as they are paid from the business rather than your net income.
This type of plan is a useful way of taking life assurance for family protection as the plan would be written in trust for your beneficiaries and therefore on claim the proceeds would not form part of your estate on death.
You can have any amount of cover between 1 x and 30 x income or a set amount. The policy can have a term to your anticipated retirement age or a maximum age of 75.
Why should I get Relevant Life Insurance?
Should you stop trading your business the policy can be assigned to you and you can continue to pay the premiums on a personal basis. This way you do not lose the cover and the premium will not change.
Six reasons why Relevant Life Insurance can save you tax.
- You instantly save tax by the business paying the life cover premium
- It is not treated as a benefit-in-kind, the premium is not included as a P11D benefit
- Premiums are not subject to National Insurance for the employer or employee
- Your business can claim Corporation Tax relief on the premiums
- Because it is placed in trust the benefit is payable tax free
- The benefit does not count towards your lifetime allowance for pension purposes
Sandra is a Senior Protection Adviser with over 40 years of experience within the financial services industry.
Call Sandra on: 0800 197 0504