Relevant Life Insurance - Dormant Company Relevant Life Insurance - Dormant Company
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  1. #1

    Still gathering requirements...


    Join Date
    Apr 2016
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    Default Relevant Life Insurance - Dormant Company

    Hi,

    I am considering making my company dormant as I am taking up a permie position.

    However I had a Relevant Life policy premium being paid off from my Business account. Can I still continue to pay this if I make the company dormant? Or would I have to convert it to a personal policy?

    Thank you

  2. #2

    Fingers like lightning


    Join Date
    Dec 2015
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    562

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    I’m pretty sure to be actually dormant there needs to be no transactions in or out. Which is why PSC are very rarely officially made dormant. They just stop trading for a bit.

    But an accountant will be along shortly to confirm.

  3. #3

    Fingers like lightning


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    Default

    Quote Originally Posted by MrButton View Post
    I’m pretty sure to be actually dormant there needs to be no transactions in or out. Which is why PSC are very rarely officially made dormant. They just stop trading for a bit.

    But an accountant will be along shortly to confirm.
    That's right. It's terminology really. A dormant company is one that has never traded (usually people who set up a company to bag a name or a contract falls through before anything happens). What it sounds like here is that the company is simply put on hold (not trading). To answer the OP, it should be fine to claim the cost.

  4. #4

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    Apr 2016
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    Default

    Thank you.

    Isnt dormant and not trading the same? I have read dormancy means no transactions apart from accountancy or bank fees.

    Is that normally be the case? Can I take dividend from the money in the company?

    With regards to my original question - Does that mean I need to convert my RLP to a personal plan?

  5. #5

    Super poster


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    Apr 2015
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    Quote Originally Posted by konsultant View Post
    Isnt dormant and not trading the same?
    Dormant companies and associations - GOV.UK

    Might start with understanding exactly what a dormant company is.

  6. #6

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    Aug 2018
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    Default Dormant

    Quote Originally Posted by MrButton View Post
    I’m pretty sure to be actually dormant there needs to be no transactions in or out. Which is why PSC are very rarely officially made dormant. They just stop trading for a bit.

    But an accountant will be along shortly to confirm.
    Yep, spot on

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