How to save tax on your contractor life insurance
Did you know that as a contractor you can fund some forms of life insurance through your business with no income tax or benefit in kind considerations? This means that you are able to protect your loved ones without having to pay tax on this essential protection for your family. Life insurance offers the peace of mind that your dependents are protected.
Despite widespread belief that insurances are an unnecessary drain on income, life cover can in fact help you reduce your tax bill. The family get the protection of a lump sum payment if the worst should happen while you benefit from tax advantages.
Relevant Life at a glance:
- Save personal income tax and National Insurance on the life insurance premiums
- You can reduce your corporation tax bill as life insurance premiums of this nature are classed as a legitimate business expense
- There are no benefit in kind considerations
- The policy is held in trust so that any payment goes directly to your dependents, and they will not be liable to pay tax on the lump sum unlike many ‘Keyman’ policies
- Your policy can be ‘inflation proofed’ so the lump sum payment will be worth what you expected whenever the worst should happen
- Our team will be able to tailor an insurance policy to suit your specific needs and will assist with the whole application process.
Don’t delay, start saving tax today!
‘Relevant Life Cover’ can help you reduce your corporation tax from day one of the policy starting and unlike standard life cover policies found on price comparison sites, your ‘Relevant Life Cover’ policy can be tailored to your unique circumstances.