Business Protection Specialist IFA : Flow Financial, Stockport
Did you know that if you’re a company director and you have a life assurance policy in place to protect your family, you could be paying more tax than you need to?
Imagine if you could take out a life assurance policy for your family for up to 15 times your income including dividends, offset the premiums against corporation tax, have the proceeds as non taxable and it wouldn’t count as a P11D! It gives you the opportunity to take a chunk of life cover you’re paying for out of your net income and have the taxman pay for it….no brainer!
This Relevant Life Policy from Bright Grey is new to the market. The premiums may be treated as an allowable expense for the employer in calculating their tax liability, as long as the local inspector of taxes is satisfied they qualify under the ‘wholly and exclusively’ rules.
Who are relevant life policies suitable for?
- Small businesses that do not have enough eligible employees to warrant a group life scheme.
- High-earning employees or directors who have substantial pension funds and do not want their benefits to form part of their lifetime allowance.
- What is the maximum amount of cover under a relevant life policy?
- You can apply for any amount of cover up to a maximum of £5,000,000
- The maximum cover is 15 times the employee/director’s remuneration. This can include salary, regular dividends paid in lieu of salary and any benefits in kind.
About the author:
Martin Byrne is a FPB member, a qualified IFA and specializes in business protection. His favourite part of his work is helping the small guy beat the bank and the taxman. By specializing in business protection Martin keeps his finger on the pulse of business protection products and how they are relevant to today’s business owners.
Flow Financial Ltd, 9 Hyde Road, Woodley, Stockport, SK6 1QG
Tel: 0161 4066 501
Mob: 07941 294 217
Website: www.flowfinancial.co.uk
Posted by: Flow Financial
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