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P11d Personal lifeinsurance policy

Is this a pecuniary liabilty ?

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I have a limited company client that pays for the director’s private life insurance policy. The policy is in the name of the director and he is also the beneficiary.

The premiums are debited to the director’s loan account.

The company also pays for his wifes policy and the premiums are debited to the husbands loan account also.( she is not a director )

Are these payments treated as a settlement of the directors/wifes Pecuniary liability and therefore go on the P11d?.

I was of the understanding that if the DLA was in credit then there is nothing to report,

However, if the DLA is overdrawn then there it is reportable on the P11d.

Can anyone clarify for me please.



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By johngroganjga
01st Jul 2020 11:38

Yes the payments are the settlement of a participator’s pecuniary liability, but the company is not bearing the cost of them, the participator is.

So there is nothing to report on the P11D other than a possible interest benefit on an overdrawn loan account, if there is one.

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