Choose best health insurance for contractor

[SteelyDan]

That article is somewhat outdated.

Yeah i looked at that recently; as you say, outdated.

[TomBradleyWPA]

Hello all,

I'm trying to choose a good deal for a private health insurance.
Do you recommend anything?

Thanks!

Hi, If you want to know about more about WPA, more than happy to help. Me & Simon look after all contractors who take out a policy with WPA.

Medical Cover for contractors from WPA :: Contractor UK

[DeadEyedJacks]

Escalating renewal costs

Was with Health On Line (aka AXA) for a while but costs kept escalating at renewal, apparently I have this habit of getting older ever year ...

Finally decided that the exclusions and deferment periods, basically meant, it would be easier to join the regular NHS queue.

Private Health insurance seems to be like VIP lines at airport, still the same checks, people and plane, just get to sit at the front a little quicker...

[SuperZ]

I recommend getting a quote for health insurance and then starting a savings account called "Health fund" and paying the amount into that instead.

[SueEllen]

Unfortunately it depends it depends on the insurer, your medical history and whether you claim how much your payments go up by.

Oh and some private providers due to them being the company that provided benefits and private health care to ex-employers I wouldn't touch with a barge pole. Then again some of them have been involved in the benefits fiasco.

[Contractor UK]

Updated Article for Medical Cover courtesy of Intouch

Is it tax efficient to put private health insurance through your limited company? :: Contractor UK

[WordIsBond]

Updated Article for Medical Cover courtesy of Intouch

Is it tax efficient to put private health insurance through your limited company? :: Contractor UK

Remind me not to use Intouch.

Compare this with the company paying, the premium cost remains at £1,200 plus the Class 1A NI of £166, a total cost of £1,366. You would be taxed personally at 40% of the value of the benefit being £480 and that tax cost would need to be met from dividend income, using the same principles above, using up £878 of contracting income. So, the total cost to the company is £2,244. This is more expensive than paying personally!

The company would also SAVE £259.54 in Corporation Tax (19% of £1366), which is completely left out of this analysis. So the total cost to the company would be £1984.46, which is not more expensive than paying personally.

The company's cost (both the premium and the Class 1A NI) reduces the profit, and thus the corporation tax. Any analysis which leaves that out of the computations is not worth the bandwidth it takes up or the time I wasted reading it. I'd expect better from CUK.

[Contractor UK]

Thanks WIB. Updated.

Is it tax efficient to put private health insurance through your limited company? :: Contractor UK

[WordIsBond]

Ah, much better.

The tax savings aren't a lot, of course, but in the normal case it is marginally more tax efficient to pay for the insurance through the company. As always, you can ask your accountant to do the sums, and as always (and as this case proves) you can then run the numbers yourself to see what they are missing. The old "trust but verify" and expect them to explain if your verification doesn't tie out.