How Is Business Health Insurance Taxed?

I’m looking to set up Health Insurance for my business. Can you explain how this HMRC will tax business Health Insurance? Does the business or my workers need to pay any tax on this benefit?

Question asked by Sarah Wright

Your company pays the premiums on a Business Health Insurance policy. HMRC usually therefore considers these premiums a business expense allowable against corporation tax.

However, Business Health Insurance is a P11D / benefit in kind for the employee receiving the benefit.

Employers therefore need to fill out a P11D form to declare this benefit in kind to the taxman. HMRC will then tax employees accordingly.

HMRC typically achieves this through a reduction in the employee’s annual allowance. A lower annual allowance means the employee the policy covers can earn less before income tax kicks in.

Great service assisting me obtain the right product. Would happily recommend Drewberry following their professional and efficient way of working.

Jonathan Chadwick
08/06/2020
Compare Top 10 UK Business Insurers
Takes approx. 60 seconds

Or call us on 0208 432 7333

Compare Top UK Insurer Quotes Logos
Contact Us
Head Office & Pensions and Investments
Millennium Bridge House
2 Lambeth Hill
London
EC4V 4GG
Personal Insurance & Accounts Payable
Telecom House
125-135 Preston Road
Brighton
BN1 6AF
Drewberry London Office MapDrewberry Brighton Office Map
Our Core Principles
  • 1You Come FirstWe are a client focused business who always aim to put you first.
  • 2We are ExpertsTo provide you with the best advice, we need to know our stuff!
  • 3We are HumanWe are real people with feelings who are here to help you.
  • 4We are ProfessionalProviding a 5-star service requires a professional approach to everything we do.
  • 5We are here to EducateWe don't believe in sales, we are here to educate so you can make informed decisions.
Finalist - Moneyfacts AwardsFinalist - Cover Excellence AwardsHighly Commended - Protection Review Awards
Proud member of AMII (Association of Medical Insurers & Intermediaries)Proud member of Money Advice ServiceProud member of UnbiasedProud member of BIBA (British Insurance Brokers' Association)
Cookie Use

Drewberry™ uses cookies to offer you the best experience online. By continuing to use our website you agree to the use of cookies. If you would like to know more about cookies and how to manage them please view our privacycookie policy.