Employer provided life insurance policies
I thought I knew the answer to this but for 2018/19 and 2019/20 the HMRC guidance is absolutely no help at all and I dont want to work with what I knew to be the previous ruling. Employer pays for a life insurance policy, as far as I am aware the contract is between the company and the provider, which makes a payment to a named beneficiary in the even of the employees death. Firstly, am I right that the premiums are reportable on P11D, even if it is for a close company and secondly, any payout is dealt with under different provisions depending on the amount paid? My belief is that the company can pay, or arrange to pay up to four times the annual salary at the date of death and there is no income tax on the payment, either on the cost of provision or the payment in the hands of the beneficiary.