Business owner: is your personal life cover going through the business?
Did you know as a director of a limited company you could be making business and personal TAX SAVINGS on your own life insurance (ie. mortgage cover) if you are currently paying for it personally.
All too often business owners are missing out on the tax relief available to their limited company that can be achieved with a relevant life plan for themselves or for employees, as opposed to private personal life cover.
The premiums are paid for by the company and are allowable for corporation tax relief at 19 per cent, rather than out of your taxed net income. Plus unlike death in service, it can be offered on an individual basis. Without any further income tax or national insurance cost it makes sense for you and your business.
Information up to date as of June 2020.