Income Protection Insurance Premium Tax Deductible

The employer then pays the amounts involved to the employee.

Income protection insurance premium tax deductible. With a personal plan tax is paid on the premiums which are paid from post tax earnings and as a result a claim will be paid. You pay 12 months of premium in advance to receive a tax deduction. If you wish to put your income protection premiums through your limited company as a trading expense it is usually wise to take out executive income protection rather than a personal plan. If you are self employed it may be payable gross.

Income protection premiums up to certain limits qualify for tax relief at your marginal rate. If you are employed the life assurance company will deduct tax and social insurance payments from your benefits in the same way that your employer would. Therefore if you paid your premiums with your own money and you are the listed as the policy owner on the policy you will generally be able to claim the tax deduction in the year you paid the. If you prepay your income protection before 30 june you can claim your tax deduction in the current financial year e g.