Information on relevant life policies
By switching to a relevant life policy the premiums can be paid by your company instead of by you personally, saving significant amounts of income tax, employee’s NI, employers NI and also benefiting from 20% corporation tax relief. By shifting the cost to the company you could realise great savings, in your case £- over the next - years, as a 'bonus' that is allowed by this legislation.
- Payments made by the company will not be treated as a P11D benefit.
- The company will usually be able to claim corporation tax relief on the payments
- Benefits will usually be payable tax free to the director’s dependants.
Company Corporation Tax rate?
Corporation Tax is payable on the company's taxable profits. The Corporation Tax Rate currently stands at 20%.Tax calculations are based on 2015/16 tax rates and may also change in the future.
This information is based on our present understanding of current law and HM Revenue & Customs practice. It may be affected by future changes and individual circumstances.