The old cliché that if it looks too good to be true that it usually is does not ring true for the tax benefits surrounding getting your business to pay for your life insurance. If you are paying life and critical illness premiums from your taxed income then there are savings to be had of 20-45%.
It’s known as “A Relevant Life Plan” (*Relevant Life Plan is defined in S393B(4) of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA)) and it means that for key employees your business can pay the premiums for life and critical illness cover.
Thankfully the majority of our clients are in good health but each year we talk to people dealing with extremely challenging health situations so we know that the worst does happen and so you can make sure that your loved ones would at least have one less thing to worry about.
Here are some of the benefits of a Relevant Life Plan;
- Premiums are company paid.
- Employee’s pay no tax on their benefit.
- No National Insurance (NI) contribution for employee or employer.
- When death or terminal illness benefit is paid there’s no tax liability.
- Premiums do not form part of the annual or lifetime pension allowance.
- The policy is portable so can move from one employer to the next, or converted to a personal policy.
- Ideal for small businesses as you don’t need a large group of people to qualify.
- Cover available for up to 30 times gross income.
Contact us for more details.
