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.