Life insurance for the Tax Savvy
West Lancs Accountants recommends a leading provider to make it easy for businesses to access relevant life insurance
Life Insurance paid for by your business
We want our clients to save 49% on the cost of life insurance!!
Many small businesses are losing out on significant tax savings by paying for their life insurance privately. The problem is that most company directors have never heard of a relevant life policy. Therefore the uptake has been very small compared to the number of people who could benefit and save.
We wanted to make sure our clients had access to this benefit and have partnered with one of the leading providers in relevant life insurance so we can offer this to them.
Why? Firstly it saves you money straight away by moving the cost of a life insurance policy out of your pocket to your company.
High rate tax payers can save around 49% by paying for their personal life insurance via a relevant life plan instead of personally. For a basic-rate taxpayer the saving is a still significant 36%.
This saving is achieved as the cost is allowable for corporation tax, is not treated as a benefit in kind and the premiums are not subject to either employer or employee national insurance. On top of this the benefit is payable tax free and does not count towards your lifetime allowance for pension purchases. The wider benefits of life insurance are more obvious. On death or terminal illness the sum insured for in the scheme can be used to clear your mortgage, pay a multiple of earning to your family and safeguard their standard of living.