• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Getting an insurance

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Getting an insurance

    I'm thinking of getting a pretty comprehensive insurance for key personnel in my Ltd.
    How is this treated tax-wise? As far as I can see the premium would be paid from the Ltd account, but any eventual payoffs would go directly to the beneficiary, so a BIK in my view?
    Are there any insurance policies that protect a business, rather than a person?
    I am specifically thinking of a scenario, where Ltd is unable to trade as key personnel is ill.

    #2
    Originally posted by yasockie View Post
    I'm thinking of getting a pretty comprehensive insurance for key personnel in my Ltd.
    How is this treated tax-wise? As far as I can see the premium would be paid from the Ltd account, but any eventual payoffs would go directly to the beneficiary, so a BIK in my view?
    Are there any insurance policies that protect a business, rather than a person?
    I am specifically thinking of a scenario, where Ltd is unable to trade as key personnel is ill.
    If the company is the policy holder it will normally receive any payments relating to the life insured, i.e. the key person. This kind of policy will not be a benefit and kind and will be a tax deductible expense for the business. However, where the key person is also a significant shareholder, tax relief will be disallowed.

    I hope this helps.

    Martin

    Comment


      #3
      IIRC, the only type of life assurance policy YourCo can pay for without BIK issues is a "Relevant Life" policy. Speak to a broker about one.

      These policies are normally written into trust so it can be paid out to the beneficiaries without any tax implications or tying it up in YourCo:

      Legal & General - Relevant Life Plan

      Comment


        #4
        Originally posted by yasockie View Post
        I'm thinking of getting a pretty comprehensive insurance for key personnel in my Ltd.
        How is this treated tax-wise? As far as I can see the premium would be paid from the Ltd account, but any eventual payoffs would go directly to the beneficiary, so a BIK in my view?
        Are there any insurance policies that protect a business, rather than a person?
        I am specifically thinking of a scenario, where Ltd is unable to trade as key personnel is ill.
        Most personal assurance policies should be paid personally as they benefit the individual rather than the business - but its best to talk to an IFA about this as they are the experts and some policies can be paid for bone fide by the company. They can help you with setting up discretionary trusts and the like for your family too. My recommended IFA is Philip Lee from Hanson Wealth who can be contacted on 07711 767452.

        Graeme Bennett ACMA MBA

        Comment


          #5
          Claiming a rent
          Started by Ltd, Today 12:34
          Getting an insurance
          Started by yasockie, Today 16:30
          Do these titles look strikingly similar to anyone else?
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            This thread has just reminded me that I still haven't written my life assurance plan into a trust - I must sort that out.

            FWIW, when I was looking for life assurance, both for me on an individual policy (level term) and for my wife and I (decreasing term to cover the mortgage once we complete our purchase), I got my mortgage broker to look into it.

            There were a few past health issues that were causing the cheapest quotes to be loaded. I had quotes as cheap as £10 p/m for £300k level term cover for about 22 years. With loading these were doubled. In the end I went with L&G who were cheaper than most of the loaded premiums and partly out of principle as I felt the loading was unfair.

            I looked into Relevant Life policies at the same time but even with the corporation tax saving, it worked out slightly cheaper to pay for a normal policy myself. I have a L&G level term policy of £400k for 24 years and pay £19 p/m. YMMV.

            Comment


              #7
              Originally posted by northernladuk View Post
              Do these titles look strikingly similar to anyone else?
              No. Mine is grammatically correct (within reason).

              Comment


                #8
                Originally posted by TheCyclingProgrammer View Post
                IIRC, the only type of life assurance policy YourCo can pay for without BIK issues is a "Relevant Life" policy.
                These policies are normally written into trust so it can be paid out to the beneficiaries without any tax implications or tying it up in YourCo:

                Legal & General - Relevant Life Plan
                Thank you - that's exactly what I'm after

                Comment


                  #9
                  Relevant Life

                  Just set one of these up through a very helpful broker called Richard Plews at Ikap Life. Tell him I sent you/
                  World's Best Martini

                  Comment

                  Working...
                  X