How could you benefit from Relevant Life Cover?
Many company directors are not aware of the fact that their personal protection insurance is a legitimate business expense. Nor do they consider the effect of what might happen to their business if they, or another director, were to die in service. What then?
If you don’t have enough employees to warrant a Group Life Scheme, Relevant Life Cover may be just what you need.
What are the advantages of Relevant Life Cover?
- The benefits won’t form part of the employee’s lifetime pension allowance.
- The payments made won’t form part of the employee’s annual allowance.
- The payments employers make aren’t subject to income tax because they’re not normally assessable on the employee as a benefit in kind.
- These payments can 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.
- In most cases the benefits are paid free of inheritance tax – provided they’re payable through a discretionary trust.
The truth is that there’s a lot more to planning than policies, and several ways to make life cover a tax efficient expense. An eyes wide open risk assessment of director contribution can raise a whole series of unexpected and unwelcome scenarios, all of which will be worth having a viable solution for.
If you want help to make the unpalatable manageable AND tax efficient why not give us a call. You can reach us on 01454 501 959 or use the contact form.