Very often our clients call us to advise them on how they can save money through their business, especially when it comes to paying their tax bills to HMRC every year. Running a successful business brings challenges and rewards but it can be hard to find time to ensure you are making the most of the benefits and allowance available.
The question very often asked by you is: what else can I put through my business as an expense? The answer is – “Life Insurance”.
Most of us do have a Life Insurance policy where we mainly pay from our own pocket. Relevant Life is unique and available only in the UK, for directors and employees of limited companies, where you will be able to run the premiums through your business as an expense.
Being a Director of a limited company, you can enjoy valuable tax benefits if the premiums for your life insurance are paid by your company instead of from your personal income after tax. This makes it more affordable to have the right insurance in place to protect your family.
A Relevant Life is a term assurance plan available to employers to provide an individual death in service benefit for an employee. It is designed to pay a lump sum if the employee dies whilst employed during the length of the policy.
- Significant tax savings, almost 50% on gross premiums using a Relevant Life Policy compared to using traditional life policies.
- Premiums are paid by the employer and may be treated as a business expense
- The cover does not form part of an employee’s Lifetime Pension Allowance
- No capital gains tax
- The Relevant Policy can be converted to a normal life policy
- It can provide a cost-effective solution to provide life cover for employees of organisations that are not eligible for a group life scheme.
- Tax efficient – no National Insurance on premiums or Inheritance Tax on pay outs
- Policy will be written in a trust so any claim made this will sit outside the inheritance tax
- Life and critical illness cover pays out if the life covered dies or is diagnosed with a critical illness that meets their policy definition.
If you would like to get some more information about Relevant Life, we will be more than happy to help you on how you can get financial advice on this unique offer. Please contact email@example.com or via our contact form for more info.