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Contractor asks:
Can my company pay for my private medical insurance?
Acumenica Answers:
This can be paid for by the company, however, it would be treated as a benefit in kind. This means the company would pay Class 1A NI at 14.53% on the total cost, but would benefit from corporation tax relief at between 19% and 25% (depending on profit). However, the cost would also be added to your personal income for income tax purposes. Whether or not this is beneficial for you will depend on your current income levels and sources.
Need further advice?
It's advisable to consult with an accountant or legal advisor when setting up a UK limited company to ensure that you meet all legal requirements and regulations. Acumenica team are on hand to help business owners set up their limited company as well as on other matters. To arrange a no-obligation confidential chat, please complete the form on our Contact Us page or call 03330 166559.
