How Does HMRC Tax It?
For employers, it’s usually an allowable business expense against your corporation tax bill. Meanwhile, staff usually receive the payout free from tax.
Is It A P11D Benefit In Kind?
However, it’s important to know that Group Critical Illness Cover is a taxable benefit in kind (P11D).
Your employees therefore have to pay additional tax on the premiums you pay on their behalf.
Usually, HMRC deducts the cost of premiums you’re paying from workers’ personal allowances. Having a lower personal allowance means income tax kicks in earlier on employees’ wages.
As an employer, you’ll also have to pay employer’s National Insurance contributions on the premiums.
Who Are The Best UK Group Critical Illness Insurance Providers In 2021?
We are an independent insurance broker. That means we work with every leading UK insurer, searching the entire market to find the best fit for you, your business and your employees.
The top group risk insurers we deal with are:
- Canada Life
- Legal & General
The Best Additional Benefits
On top of the core benefit of paying out for critical illnesses, support services insurers usually include free with policies often include:
- Employee assistance programs
- Digital GP service (read our director’s experience using it)
- Second medical opinion service / best doctors (offering access to leading global experts if an employee becomes ill and wants a second opinion on such things as treatment or cancer diagnoses)
- Mental health support service
- Medical helplines staffed by trained nurses
- Legal advice.