Sickness income cover insurance - legitimate expense?

[GreenerGrass]

who's your policy with?

Funnily enough, Dentists and General.

[XLMonkey]

Is sickness income cover insurance (i.e. Dentist and General's policy) a legitimate company expense?
The cover is based on providing a reasonably high % of your typical contract net income, and obviously only applies when you are in a contract.

I can see why it might not be deemed an allowable expense, as it doesn't just cover just your company salary, but a % of total income including dividends. But then again, do they really need to know the finer details of the cover?
Also the policy is currently in my name rather than the company name (was with a brolly when I started it), but perhaps that could be changed. To be honest I haven't checked with the provider yet.
Not sure if there would be any IR35 implications either way.

In theory they could be legitimate expenses - after all, football clubs pay for insurance to cover their players against sickness/injury (Newcastle may well end up marginally in profit from signing Michael Owen, they've been paid so much compensation). But, I've not heard of any actual examples in the computer contracting field.

I had a brief look at it last year, but the premiums were all to rich for my tastes. Think that the smart move has to be self-insure (i.e. put aside enough money in the company to cover for a significant period off work), rather than trying to pay someone wlse to take the risk for you.

[~Craig~]

I'm paying about £80 something a month. Over a year the level of cover is such that it would basically pay for itself if you were off sick for as little as a week or so. If you get a bout of flu or yellow fever, as long as you get a doctors letter you're covered.
Any pre-existing medical conditions (e.g. bad back) are not covered.

who's your policy with?

[GreenerGrass]

I've been thinking about both but haven't really had a chance to delve into it much. What are he premiums like?

I'm paying about £80 something a month. Over a year the level of cover is such that it would basically pay for itself if you were off sick for as little as a week or so. If you get a bout of flu or yellow fever, as long as you get a doctors letter you're covered.
Any pre-existing medical conditions (e.g. bad back) are not covered.

[Kyajae]

Is sickness income cover insurance (i.e. Dentist and General's policy) a legitimate company expense?
The cover is based on providing a reasonably high % of your typical contract net income, and obviously only applies when you are in a contract.

I can see why it might not be deemed an allowable expense, as it doesn't just cover just your company salary, but a % of total income including dividends. But then again, do they really need to know the finer details of the cover?
Also the policy is currently in my name rather than the company name (was with a brolly when I started it), but perhaps that could be changed. To be honest I haven't checked with the provider yet.
Not sure if there would be any IR35 implications either way.

Interesting question. My guess is it would be seen as a benefit in kind if your company provides it, bit like health insurance for a permie. However, business interuption insurance is a legit expense but I don't know if it would cover sickness.

I've been thinking about both but haven't really had a chance to delve into it much. What are he premiums like?

[GreenerGrass]

Is sickness income cover insurance (i.e. Dentist and General's policy) a legitimate company expense?
The cover is based on providing a reasonably high % of your typical contract net income, and obviously only applies when you are in a contract.

I can see why it might not be deemed an allowable expense, as it doesn't just cover just your company salary, but a % of total income including dividends. But then again, do they really need to know the finer details of the cover?
Also the policy is currently in my name rather than the company name (was with a brolly when I started it), but perhaps that could be changed. To be honest I haven't checked with the provider yet.
Not sure if there would be any IR35 implications either way.