Directors remuneration

Please is it right to include long term disability insurance for directors/members as remuneration

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Please is it right to include long term disability insurance for directors/members in their total remuneration or should be classed as insurance?

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By lesley.barnes
01st Sep 2021 16:32

Who will benefit from a payout from the policy is it the Company or is it the individual?

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Replying to lesley.barnes:
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By Papilo
18th Sep 2021 09:51

Thanks, the director.

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By Papilo
01st Sep 2021 17:50

the individual

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Replying to Papilo:
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By David Ex
01st Sep 2021 18:23

Papilo wrote:

the individual

It’s a benefit for the director then. Not sure where in the P&L it would be disclosed. I assume it’s not a material amount.

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By lesley.barnes
02nd Sep 2021 09:34

www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45525

If the insurance is taken out by the Company on behalf of the employees then the company can deduct the cost on the P&L but it goes onto the P11D of the employees it isn't included on their payslips.

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Replying to lesley.barnes:
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By Papilo
18th Sep 2021 09:53

Thank you, this is quite helpful

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Replying to lesley.barnes:
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By Papilo
18th Sep 2021 09:53

Thank you, this is quite helpful

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Replying to lesley.barnes:
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By Hugo Fair
18th Sep 2021 12:05

".. it goes onto the P11D of the employees it isn't included on their payslips."

That's one correct way to deal with it ... or the company can elect (prior to the start of the tax year) to process such BiKs through the payroll (known as 'payrolling of benefits') - in which case it will appear on the payslip, and a P11D will not be needed.

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