Insurances

Poodle

Hi

I normally disallow in self employment tax computaions insurance paid, usually through the business bank account by DDR for the proprietors in respect to their own loss of earnings, accident cover and insurance covering loan repayments taken out for business purposes.

Does anyone have any links to confirm that I am correct with this i.e. to back up my assumption should I be challenged by dare I say it 'a client' as opposed to HMR&C?

Poodle

deanshepherd

Here's a few:

Accident and sickness policies

I generally advise that premiums are not deductible as the payout is not taxable. Not strictly correct but it serves the point.

Key person insurance

Insurance guidance generally


With regard to loan protection the legislation is not so clear. HMRC will always refer you to BIM45815 where they state it is not allowable. However, the legislation (ITTOIA 2005 s58) only refers to exchange rate loss protection. I think, strictly speaking, this is irrelevant so you are back to the wholly and exclusively quandary.

Poodle

Thanks Dean

Much appreciated

Poodle