September 21st, 2018

Can my company pay for health insurance?

The company can pay for health insurance and get tax relief but it is taxed on you as a benefit in kind.  That means if the company paid £1,000 for your health insurance then you’d have to pay £400 personal tax on the benefit (assuming you’re a higher rate tax payer in the year)

The company also needs to pay Class 1A National Insurance of 13.8% on the premiums.

And finally… you’d need to submit P11D forms to report it to HMRC or pay an accountant to do the forms for you.

All that said it’s not necessarily a bad thing.  Sometimes the rates that insurers will do for companies are lower than they’d do for you personally.

Good insurances to put through the company are life insurance and executive income protection.  Both of these are tax deductible in the company but not taxed on you.

Executive income protection is there to pay out if you can’t work for some reason (serious stuff rather than a head cold). It’s always worth having a think about how long you could financially survive for if you were unable to work.

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Limited Companies

by
Managing Director

Jonathan trained as a chartered accountant with Price Waterhouse (now PWC) in Liverpool before becoming a small business services manager for Grant Thornton in Warrington. He also spent three years as the financial controller for Brookside and Hollyoaks (not that he ever mentions it!).

Jonathan is recognised as a specialist in the entertainment industry and is often called upon to provide training courses and seminars for media professionals. He's also a bit of a technology geek and has been recognised with the accountancy industry as one of the most progressive accountants in the UK.
Outside of work Jonathan is very proud to be the Treasurer of the Tim Parry Johnathan Ball Foundation for Peace and to be on the Council of the Liverpool Institute of Performing Arts (LIPA)

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