Putting a company package together for health/dental?

[d000hg]

I did a quick search and didn't see much on this. What's the story about having MyCo provide private health and/or dental for employees (i.e. me)?

[Craig@Clarity]

The company can pay for PHI and dental, however, as you would be the beneficiary of these policies, there will be a benefit in kind charge. This will be either 20% or 40% (depending on which tax bracket you fall into) of the premium payments. The company will also have to pay class 1A NIC which works out at 12.8% of the payments.

[Wanderer]

The company can pay for PHI and dental, however, as you would be the beneficiary of these policies, there will be a benefit in kind charge. This will be either 20% or 40% (depending on which tax bracket you fall into) of the premium payments. The company will also have to pay class 1A NIC which works out at 12.8% of the payments.

Does that mean that you are probably better off not arranging a company policy and just paying for the health insurance out of your own pocket?

[Clare@InTouch]

Does that mean that you are probably better off not arranging a company policy and just paying for the health insurance out of your own pocket?

If you withdraw a basic rate dividend and use that to pay the policy yourself then you're not suffering any personal tax, whereas you would be paying a benefit in kind if the company had paid it (along with employer's NI).

Balance that against the CT you save by having it as a company expense, and the personal option is slightly better.

[Bexter]

This is an interesting question, I've been thinking a similar thing. But with a slight twist that I used to have a certain dental policy through a permie role, and I wanted to continue that policy as it was extremely good, however you can only get it through a company - the insurers don't do personal quotes/cover.

So I guess the benefit is being able to get that good policy again through my ltd, but then paying slightly more tax on it. Bit of a toss up considering the extra hassle too, but I'm verging towards doing it cause they really were very good!

Another question though - what if I want to put my partner on the cover too (who isn't a director in my ltd), would I have to pay BIK on that too, even though its not technically a benefit to me? Or would I not even be allowed to cover him, without making him a director? Sorry stupid question, but its really hard to find a definitive answer to this!

[ratewhore]

Another question though - what if I want to put my partner on the cover too (who isn't a director in my ltd), would I have to pay BIK on that too, even though its not technically a benefit to me? Or would I not even be allowed to cover him, without making him a director? Sorry stupid question, but its really hard to find a definitive answer to this!

I'm covered by my wifes employers BUPA cover so I don't see why not.

[rmmc]

Another question though - what if I want to put my partner on the cover too (who isn't a director in my ltd), would I have to pay BIK on that too, even though its not technically a benefit to me? Or would I not even be allowed to cover him, without making him a director? Sorry stupid question, but its really hard to find a definitive answer to this!

If you want you can include cover for your partner or your children. You do not need to make them director.

As they are receiving benefit because of you, so you would have to pay BIK. The full premium and Employers nic would be allowable for tax purpose.