i've got a great quote for all inclusive health insurance for the family, and was wondering if i could pay for it out of the company coffers as a valid "operational expense" on the basis that as a 1 man gig, if I go eeeeeeeeeel my limited company becomes very limited and I will be unable to generate VAT and tax revenue for Blighty?
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Heaven is a place called "Invoice Paid" -
Bik -
I have a group scheme set up for my LTD that includes me and my Co Secretary (my wife). Costs me marginally less than what I was paying for myself to do an "independant" PHI. I just declare it as a BIK on my P11D. Job done!
PM me if you want any more info.
HTHComment
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With insurance it is a tricky one.
With clients I have dealt with you can pay out of your company hence avoid (ahem dodge) the tax. Though if you do make a claim you will be taxed on any monies coming to you. Claiming it back as an expense may be tricky as it is not ‘essential’ to run your business and the inland revenue will argue that you have the NHS so PMI is a luxury. (fkn necessity if you ask me!)
However as you are looking at PMI cover this should not be an issue on getting taxed for monies coming to you, as there isn’t any! The only thing I would advise against is getting a full family policy. It would be better to get separate ones, as with PMI you get a no claims bonus on most policies. With separate ones if a claim is made then the other policies do not go up, where with a family one, if a claim is made the premium is likely to go up. Hence it can be slightly lower, they base their prices on the odds that once every five years you will make a claim on your health.
Hope this helps"Wait, I still function!"Comment
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Health costs are always a BIK. The revenue conveniently ignore the benefits to them of somone paying to get well quicker and thus paying more tax when they get back to work.Originally posted by despot
timComment
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thanks all ... I just wanted to be prepared for my friendly accountant and coffee over the annual accounts. He is brilliant but always breaks into a nervous grin when I push ... appreciate the responses!!Heaven is a place called "Invoice Paid"Comment
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Originally posted by despot
Let us know what your accountant thinks ??Comment
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I asked my accountant the same thing recently - and was advised to just pay for it myself ... so I did.Comment
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Good tip mate ... will follow up to see if it makes a difference on the quote!!Originally posted by Swiss Tony
Accountants tend to be quite lazy, even the good ones. If the company pays for the PMI directly it will pay out £1k per year as a business expense and hence "the company" effectively gets me a 20% discount (£200).
For instance, I'm sure you could put travel insurance as a legit business expense if you have to do a lot of travel to carry out your contract. Miss a flight and you're losing money for the company!!
The analogy could go on and on, but as contractors our greatest company asset is (our company secretary
) ... oops, I meant, us?! So it seems a bit bizarre that a company cannot expense protecting it's most valuable asset from unnecessary productiveness. Drat a double negative ... gotta watch those!!
I'm gonna make my accountant sweat for it!! No doubt he will just look over his specs at me and say ... now now sonny!!
I think most accountants would see £200 as a bit penny pinching. But we must keep the business lean and mean. It all adds up!!Last edited by despot; 7 February 2007, 20:45.Heaven is a place called "Invoice Paid"Comment
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