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Ask the Accountant

Can I put the cost of private medical insurance through my company? #AskTheAccountant

August 10, 2018

Accountancy Expertise – here to answer your questions to help you run a successful business.

We'll be posting frequently asked questions and answers. Can’t find the answer to a question you're looking for? Get in touch at contact@carringtonaccountancy.com one of our expert accountants will be happy to help. #AskTheAccountant

 

Question: I am considering taking out private medical insurance; would I be able to put this through the company?

Expert Answer: Yes the company can pay for the cost of the private medical insurance, however:

  1. You will taxed personally on the premium as a benefit in kind
  2. The company will be charged employers NI on the premium (13.8%) so when you take these into account its questionable if it’s really worth it.

If you are a higher rate or highest rate taxpayer and would need to take extra dividends to pay the full cost personally instead, it can be marginally better to pay through your company since the dividend tax has been introduced. Check with your accountant first though.

Submit your question to one of our experts via twitter @CarringtonAcc using the hashtag #AskTheAccountant.