2 Directors = 2 Employees, Ltd Company, Private Healthcare?

solidpro

Hi

My wife and I are the sole employees and directors of a limited company. We are approaching our 50s so have started to think about getting private healthcare insurance. Is there any benefit or possibility of arranging this through the company to either save some tax or money? Is there any advantage of trying to do it this way? I think we looked into it about 6 years ago but back then we had 2 other employees and I think we would have had to put everyone on it, rather than just us two, which put us off at the time. however now it's just us that wouldn't be a problem.

Thanks

DullGreyGuy

You need to know your corporation tax rate and your marginal rate of taxes each but assuming you are full corporation tax and 40% tax payers each then

Premium £5,000
Corporation tax saved £1,250
BIK paid £2,000
Total cost £5,750

So the other question is how much is the corporate scheme -v- a private policy. When I looked into it a private policy for husband and wife was much cheaper than a SME company policy and that's before factoring in the BIK that was more than the corporation tax saving. 

solidpro

Thanks, you've answered my question!