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Medical insurance bik

Medical insurance bik

My client company contracts with BUPA for medical insurance for its directors but the premiums get charged to the directors loan accounts. Therefore not a P&L item but presumably also not a bik?

I think I might be trying to see complications where there are none but would be happy for confirmation.

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By MJShone
29th Nov 2012 10:21

No BIK

As long as the DLA isn't written off, then the director is essentially paying the premium himself.

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By jbayman
29th Nov 2012 15:58

BIK

I agree

 

In a similar way we normally recommend premiums for share purchase policies (under a business trust) are treated this way. As long as there is a positiv DLA it avoids the BIK. Its not an entry in the P&L - just a repayment of capital.

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