Self Employed - Private Medical Cover

henrygregory

I have been self employed for just over two years now and I am keen to ascertain if it is possible to purchase medical insurance cover and register it as an expense against my business?

My justification would be, that I need to be able to get the medical cover I need, should I need it promptly and effectively as the longer I am ill, the longer I am not earning.

Does anyone have experience of weather or not this is allowable? My instinct tells me not as I could claim for a car rather than miles because I need to get to work, I could be claiming for non-uniform clothes because I need to wear something...the list could go on and on.

Any clarification would be greatly appreciated.
:money:

DKLS

You can, but my accountant advised it would be cheaper to pay personally, as there are tax and NI considerations as its classed as a BIK and you would have to fill in a P11D.

From memory I think its £300 cheaper per year to pay it personally.

[Deleted User]

DKLS wrote: »

You can, but my accountant advised it would be cheaper to pay personally, as there are tax and NI considerations as its classed as a BIK and you would have to fill in a P11D.

From memory I think its £300 cheaper per year to pay it personally.

Perhaps you missed the self-employed bit? BIK and P11D forms do not exist for self-employed.

I believe that it would not be an allowable expense against the business profits as it is related to you personally. However, there could be a situation where, as a condition of obtaining finance for a business, the bank may insist on additional life insurance which is assigned to that loan which may be allowable. I cannot foresee this occurring with medical insurance though.

Undervalued

[Deleted User] wrote:

Perhaps you missed the self-employed bit? BIK and P11D forms do not exist for self-employed.

I believe that it would not be an allowable expense against the business profits as it is related to you personally.

That is my understanding and is in line with my accountant's advice but that was nearly 20 years ago!

Obviously if the OP became a limited company then that may help although I wouldn't have thought that would be worthwhile for this reason alone.

henrygregory

Thank you kindly for taking the time to post and offer some assistance.
Sadly for me, I don't believe I earn enough to justify starting a LTD company.

For now, I think I will proceed as is and try to be extra careful such that I don't end up in hospital, or alternatively, look at getting a policy with my post tax income.