One of the most frequently asked questions from our contractor community is around purchasing private health insurance & club memberships through your Limited company – we answer all of your questions here…

Can I expense the cost of my private health insurance in my limited
company?

Yes you can purchase health insurance through your limited company

 

Is it tax efficient versus paying it myself?


The cost is tax neutral, i.e. you would not gain any advantage to purchasing the health insurance through your company. The reason is that you would have to pay a Benefit in Kind relating to the value of the gain, this would negate the tax saving

 

Is it possible to get a better deal on my health insurance if it’s a
corporate plan?


In some cases it may be possible to get a better deal on corporate
plans however you would need to know the plans available and how
to access them.

 

My friend puts his Golf membership through his company, can I do
this?


It is not advisable for following reasons:

 

  1. It is not an allowable business expense in your accounts, giving rise to a Corporation tax charge of 12.5%
  2. A BIK would be charged on the amount of fees, giving rise to Income tax at your marginal rate of tax (up to 52%)
Author

Gerard Kiernan

Director

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