Business Owner

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  • We are not authorised via Personal Touch Financial Services to provide commercial mortgage advice. We will refer you to a suitably qualified and authorised 3rd party.
  • Business protection. Key Man/Share options etc.
  • Business Utility Rates available
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  • Discover the tax advantages of a Relevant Life Policy

    Up until recently if a company director got the company to pay for their personal life insurance premiums this would be classed as a P11D benefit. However Bright Grey came up with a very innovative product known as a relevant life policy.

    This was designed with small business owners such as limited companies where the company can pay for the life insurance premiums for employees.

    Here at we have had many enquiries from company directors many of whom are smaller businesses some of which are husband and wife run businesses.

    The results have been a saving of up to 47% off their life insurance premiums as the company has paid for the cover.

    Let’s now look at this in practice

    Client A is a shareholding director of LBD Ltd. They currently pay for their life assurance personally at a cost of £200 per month out of their post tax salary. As Client A is also a business owner, we will look at both their personal and business costs and the taxation of providing this cover.

    Client A is a higher rate taxpayer; they pay 40% Income Tax on the higher part of their salary.

    They also pay the additional 1% rate above the upper earnings limit for National Insurance.

    We have assumed the payments for this plan are taken from this top end of their salary and have used these rates in our calculation. LBD Ltd pays employer’s National Insurance contributions at the “contracted in” rate of 12.8%.

    In this example salary, National Insurance contributions and Relevant Life Policy payments are all treated as allowable deductions for the purposes of Corporation Tax.

    Information regards taxation levels and basis of reliefs are dependent on current legislation, individual circumstances are not guaranteed and may be subject to change

    Let us review your current policies- Premiums are falling.

    Just call us direct on 07946 294 162 and he'll talk you through your options.

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