Unveiling the Tax-Saving Superpower for Business Owners: Relevant Life Insurance!
We’ve got a game-changing tax-saving trick that many of you might not be utilizing, and it's a total game-changer for both your business and personal finances.
Let me pose a question to you: Do you possess a shield of invincibility? Assuming the answer is a resounding NO, wouldn't you want to ensure financial security for your loved ones in the unfortunate event that life takes an unexpected turn?
Now, if you're nodding along and thinking YES, here's the kicker – what if you could achieve this financial security in the most tax-efficient way possible? Enter stage left: Relevant Life Insurance – a powerful, tax-efficient tool that's often overlooked.
The Marvels of Relevant Life Insurance:
Relevant Life Insurance is not your run-of-the-mill life insurance. It's a specialised policy against you, the business owner, but with a twist – it's funded by your company. This means it's not just a financial security blanket; it's a tax-saving superhero.
Here's the scoop – the payment made by your company for Relevant Life Insurance is treated as a legitimate business expense, making it fully tax-deductible. This can potentially save you a whopping 25% on corporation tax. But wait, there's more!
Unlike regular life insurance where premiums are paid from your personal, post-tax income, Relevant Life Insurance premiums are business expenses. For a higher-rate taxpayer, that translates to a personal tax saving of 33.75%. Let's crunch the numbers, shall we?
Let's Break Down the Numbers:
Assuming a modest monthly premium of £50, that's £600 per year.
25% Corporation Tax Saving: £150
Personal Tax Saving (Higher Rate): £305
In essence:
Relevant Life Policy (Paid by Limited Company): Cost £450
Normal Life Insurance (Paid Personally): Cost £905
Total Annual Savings: £455
That's right, you could be saving a £455 annually – just by making a simple switch to Relevant Life Insurance. It's practically a no-brainer!
But here's the cherry on top: Relevant Life Insurance isn't just for the bosses. Every director out there is entitled to this financial superhero, making it an opportunity too good to pass up.
And hey, did you know that you can extend this tax-saving benefit to your employees? Relevant Life Insurance for your team members is not only a great perk but also tax-free!
So, fellow business leaders, it's time to don your capes and harness the power of Relevant Life Insurance – because when it comes to protecting your loved ones and your hard-earned money, this superhero policy is here to save the day!