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Life insurance - P11D Benefit?

  • Fellow PM.Dip
  • Practice Licence
  • 258 posts
  • # 118780

Hi All,

I've googled this and look at the HMRC website, both of which were quite unhelpful. I'm trying to find out if insurance premiums paid for by a company, for a director and any employees will be deemed as a P11D benefit?

I assume the company needs to arrange the policy and also needs to be named as the beneficiary of the policy if it is not?

  • Member PM.Dip
  • Practice Licence
  • 191 posts
  • # 119047

Lady M said:

Hi All,

I've googled this and look at the HMRC website, both of which were quite unhelpful. I'm trying to find out if insurance premiums paid for by a company, for a director and any employees will be deemed as a P11D benefit?

I assume the company needs to arrange the policy and also needs to be named as the beneficiary of the policy if it is not?


 Hi Lady M,

 

I see you posted this quite a while ago and you may have found the answer by now, but I had a client who was sole Director of her Limited Company and she had a life insurance policy, paid for through the Company. It was determined that as she was named on the Policy and would be the beneficiary on her death then it was a benefit in kind and should be reported on a P11D.  

I'm not sure if you can set up Life insurance policies where the Company is the beneficiary.  It was suggested that she took out a Key Workers Policy instead.  That way, if she died, the Company would get the money and would be able to employ someone else to keep the Company going or whatever else was decided.

Pauline

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