Can Life Insurance be put through as a business expense?

As you may know many larger companies provides a benefit package for all of their employees, this may include a form of life cover. But what about if you own a company or you are self-employed? You may not have any form of cover in place.

That’s where this guide can help.

Is Life Insurance tax deductible?

In many cases life insurance premiums can be treated as a business expense with HMRC, so yes life insurance can be tax deductible. This will only apply if you own a limited company or you are self-employed.

Can a company director 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.

One of the major benefits of being the company owner or company director is that you are able to obtain life cover tax-efficiently through the company.

If you did this as a company director you would be saving yourself thousands over the duration of the policy by paying for it though the company instead of your own income.

To do this they can set up a Relevant Life Policy which can be paid for by the company on behalf of the companies director(s). Then the company can claim back corporation tax and no Employer National Insurance is due, the employee also does not pay income tax or National Insurance.

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

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Speak to one of our expert life insurance advisers

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 Future Perfect Financial Solutions to learn about the tax rules and what policies you could take out.

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