*Assumes that corporation tax relief at 19% has been granted under the ‘wholly and exclusively’ rules. In both cases we have assumed a payment of £1,000 each year for the life cover on an employee who is paying income tax at 40% and employee’s National Insurance at 2% on the top end of income. We have also assumed that the employer is paying corporation tax at the rate of 19% and will pay employer’s National Insurance at the contracted in rate of 13.8%.
We’ve based the information in our example on our understanding of tax law and practice as at August 2017, so it may change. The tax treatment of all protection plans depend on individual circumstances so may change.
Contact the PIB specialist team on 01352 721300 so we can understand your business’ requirements and bespoke a solution that will ensure the future success and value of your company is protected.