Are you a company director? Do you have life insurance in place to protect your family?
If so you could be paying an unnecessary tax penalty. If you pay for this cover from your own bank account you will be paying from post-tax income, and if you are paying from the business account you will probably be taxed on the payment as if it were income.
Larger companies can avoid this by introducing ‘group death in service cover’. This is a highly tax-efficient way of providing life insurance, but is not generally available for smaller companies.
However, changes in legislation have allowed small companies to benefit from this arrangement by taking out ‘relevant life policies’. These can be written on an individual basis so are available to all companies no matter how small.
The tax benefits are:
Payments are made by the company with no benefit-in-kind charge back to you
No National Insurance implications
Possible tax relief as a business expense depending on your individual circumstances
Tax-free benefits to your dependants
If you are an employer either a limited company or a sole trader/partnership you can also provide a relevant life policy for key members of staff
GMM ADDRESS GMM Commercial Insurance Services Limited, Carlisle House, 61 Wolborough Street, Newton Abbot, Devon, TQ12 1JQ We are members of the Financial Ombudsman Service. For more details see: http://financial-ombudsman.org.uk/
GMM Commercial Insurance Services Ltd is authorised and regulated by the Financial Conduct Authority for Insurance Mediation activities and as a Credit Broker: FRN 458372. We do not charge any up-front fees for arranging credit. Director: Simon Rice Cert PFS . GMM Insurance is the trading name of GMM Commercial Insurance Services Ltd. Registered No. 5735275. Registered in England at Carlisle House, 61 Wolborough Street, Newton Abbot, Devon, TQ12 1JQ.
GMM Financial Services Ltd is an appointed representative of Lighthouse Advisory Services Ltd which is authorised and regulated by the Financial Conduct Authority. | Director: Simon Kneath Dip PFS | GMM Financial Services Ltd is registered in England at 3a Laburnum Row Torquay, Devon, TQ2 5QX. Registered No. 5372186 This area of the website is aimed at UK Residents over the age of 18.