Private medical insurance for third parties

Private medical insurance for third parties

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A company I act for pays private medical insurance contributions under a group policy for its directors, staff, bookkeeper, a director's spouse and a self-employed consultant. The bookkeeper provides his services to the company through his own limited company. The director's spouse does not work for the company but is the company's client. The self-employed consultant effectively runs the company on behalf of the directors.

Questions:

1) Should contributions paid on behalf of the director's spouse, bookkeeper and self-emplyed consultant be declared on P11D and is NIC applicable?

2) Are contributions paid on behalf of the director's spouse, bookkeeper and self-employed consultant allowable deductions for corporation tax purposes?

3) Do the directors need formal authority to include third parties in the company group medical insurance policy?

Thank you in advance.

Freddy
Freddy

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By User deleted
21st Apr 2005 12:01

p11d [***] - not
Of course they do, just read the p35 form where qu. 5 alludes to this although they have phrased it incorrectly.And of course employers NIC goes down on form p11d(B) etc.
My understanding of tax rules is that anything paid by a company is tax-deductible under ct600 rules unless disallowed e.g. Entertaining, BUT it is taxable on the recipient etc….. unless they lie and don’t tell the taxman who is unlikely to detect it unless massive values are involved
qu.3 i suspect a quick read of the Particles of Asociation will clarify directors powers/responsibilities, or pay a fortune to a lawyer to read them.

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