Life Insurance - Can it really be tax deductible?
Posted on 19th February 2016
Many business owners are unaware that they may be able to put life insurance through the company as a legitimate tax-deductible business expense. Not only that, if the policy meets certain conditions, it is not treated as a benefit-in-kind so there is no National Insurance or personal tax payable. Win, win!
Qualifying conditions:-
It can only provide life cover and no other benefits
It can only pay out a lump sum if the director/employee dies in service before the age of 75
It can’t have a surrender value
It can only pay out to an individual or charity
We would be happy to put you in touch with a financial advisor to explore this, in most cases there are no set-up fees.
It is important to note that this is a specific type of life insurance policy and advice should be taken before setting this up. And, it must be life insurance only and not include critical illness cover. If critical illness cover is included, you may find the premiums are not tax deductible and you have a benefit in kind to the director/employee.
If you are interested please contact us today and we can put you in touch with a specialist financial advisor to provide further guidance and, if you happy to go ahead, help get the life insurance set up for you.
Written by:
Nicola J O'Sullivan -
Effective Accounting
Founder | Xero Champion | IR35 Expert
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