Cut your tax bills with Keyman cover
Contractors trading via a limited company will typically pay for essential life cover using post-tax salary and dividends via their personal bank account. Thankfully our Contractor specialist IFAs can now provide a far more tax efficient solution.
A new Contractor Keyman insurance that we have helped trial last year allows you to fund life insurance direct from your business account, with no income tax or benefit in kind to pay. The premiums should also be ok to offset against your companies corporation tax as a legitimate business expense.
Thanks to a tax efficient trust arrangement you protect your loved ones in the same way as the death in service benefits that you benefited from when you were a permi, whilst saving significant amounts of tax compared to paying for cover from your personal bank account.
In addition to these obvious tax savings, benefits shouldn’t be liable for inheritance tax in the event of your death either.
As well as insuring yourself, any employees (perhaps your Spouse is Company Secretary?) receiving a salary can be protected too. Often it’s all too easy to think about only insuring the main bread winner but with the costs of child care etc rising fast, the loss of a home-maker can be disastrous too.
This cover is flexible enough to accommodate future changes to your employment status because it can be altered to a personally funded plan in the future if required. This feature is vitally important in case you suffer health problems that could make you uninsurable in the future. Protection can be provided until your 75th birthday and can be adapted as your needs change.
Our award winning experts are on hand
As Independent Financial Advisers with well over a decade of experience in advising Contractors we compare the providers that are able to offer this type of policy to ensure that the policy is cost effective for you. We will also painstakingly complete the all important trust documentation on your behalf to ensure that you gain the maximum tax benefits, will help transferring the policy to new trustees if needed in the future and of course will do our best to aid your family in coping if the worst should happen and they need to claim.
We understand that, as a Freelancer, your time is precious so we have streamlined our advice process as much as possible to ensure that you can arrange your policyr with a minimum of time and effort needed on your part. Our award winning protection advisers will discuss your needs via email and phone and will ensure the application is successfully completed and you gain the cover as soon as possible. On receipt of your policy documents you will also know that, compared to personally funded policies, the taxman is now helping you fund that all important protection for your family.
Please contact Catherine Young who is one of our qualified advisers at ContractorMoney today on 0845 066 8888 for more details or fill in a contact form on this site.