nEWS AND INSIGHTS

Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing.

Can life insurance be put through as business expense?

Many large companies provide a benefits package for all employees that includes some form of life cover. However, those who own a company or are self-employed may not have this kind of protection in place.

Is life insurance tax deductible?

Yes, in many cases life insurance premiums can be treated as a business expense with HMRC. This means that life insurance costs can be deductible through your tax return if you own a limited company or are self-employed.

Can company directors pay for life insurance through the company?

A major benefit of being a company owner or company director is being able to obtain life cover tax-efficiently through the company.

Company directors who pay for life insurance through the company instead of through their own income could save thousands of pounds over the duration of the policy.

They can do this by setting up a Relevant Life Policy which is paid for by the company on behalf of the director. The company can claim back corporation tax relief and no Employer National Insurance is due. The employee also does not pay income tax or National Insurance.

To a higher rate taxpayer, a £200 per month life insurance policy will cost £392 of gross pay after accounting for tax and National Insurance.

Please note that a Relevant Life Policy does not include critical illness or income protection benefits.

Book a no-obligation meeting

Speak to an expert about life insurance cover

To maximise the tax-efficiency of a life insurance policy, it is important that the costs are deduced correctly as if the calculations are done wrong, it can cause tax implications in the future.

Speak to a financial adviser at Four Wealth Management to find out the tax rules and what policies you could take out.

Book a no-obligation meeting now or phone 0117 973 0500 

Find out more about different types of protection policies we can help with


The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances. 

 


Enquire Now

If you have any queries or would like to arrange a face to face meeting with an adviser for a no obligation review of your personal finances, simply book a call back using the form below. Alternatively, you can call us on 0117 973 0500.

The Partner together with St. James's Place Wealth Management plc are the data controllers of any personal data you provide to us. For further information on our uses of your personal data, please see the Partner's Privacy Policy or the St. James's Place Privacy Policy.

Share this article

Share on google
Share on linkedin
Share on print
Share on email
Can life insurance be put through as business expense?
2021-06-04T14:15:00+01:00
FourWealth Management