Hats off to the Taxman

If you own a small business there’s a smarter way to buy life cover for yourself and your key employees.

With a relevant life policy the business makes the payments, not the person who’s covered. That means you won’t pay any national insurance contributions or income tax on the premiums but you still get the benefits of corporation tax relief.

The table below illustrates how a relevant life policy can cut company costs:


Now, how does that look for a head start for your business?

Please note, this is based on our understanding of the current tax law which could change in the future.

Source: *Assumes that corporation tax relief at 20% has been granted under the ‘wholly and exclusively’ rules. In both cases we’ve assumed a payment of £1,000 each year for the life cover on an employee who’s paying income tax at 40% and employee’s National Insurance at 2% on the top end of income. We’ve also assumed that the employer is paying corporation tax at the small profits rate of 20% and will pay employer’s National Insurance at the contracted-in rate of 13.8%.


To find the best way to protect you and your family, talk to us today.

Contact Gary Nixon – or call 01274 465 557 or Jane Sharpley – or call 01274 465 597.