“Can I put my health insurance through my company?” I hear this question pretty much on every conversation that I have with every new client.
The short answer is - Yes. But, as always, it’s not quite that simple.
Let me give you an example:
The client is a UK-based entrepreneur. Single director of a Ltd company. Decent profits. He wants a proper international policy for himself, his wife, and their two kids. The quote for the “all bells and whistles” was just under £12,000 a year. So naturally, his first question was:
“Should I pay personally or run it through the company?”
The good news - you can absolutely run it through the company.
The even better news - it can be more tax-efficient than paying from your personal bank account.
Here’s how it works (and where people often get confused):
If the company pays, then this premium is treated as a business expense, so it reduces the company’s taxable profit (saving you 19–25% Corporation Tax). HMRC sees this as a Benefit-in-Kind (BIK), since you’re personally benefiting from it. This means:
Still with me? Good. Because here’s the point:
In most cases, despite additional expenses this approach STILL works out cheaper than paying for the same policy from your post-tax income you make in the UK.
Why?
Because if you do, then you will really need to draw out approximately £18k–£22k gross (depending off course on how you are paying yourself) to afford that £12k premium, BUT if you do end up paying this way, then there will be NO Corporation Tax relief, NO efficiencies, so most people say - No, thank you, I will use my business for paying for this plan.
BUT (and this is important)…
Before you will even consider switching payment method on your Bupa Global or Cigna policy – SPEAK TO YOUR ACCOUNTANT!!!
Seriously. This post isn’t tax advice. Your accountant is the only person who can confirm if this approach IS suitable in your specific circumstances. Some structures (especially if you’re doing salary sacrifice, mixing in dividends or have foreign personal incomes) have additional quirks.
What I CAN say, is that when done right, this setup may save you thousands per year while keeping everything compliant and clean. So yes — your Ltd company can pay for your international medical insurance. And no, it doesn’t mean triggering a tax apocalypse.
You just need:
Need help with IPMI policies? Drop me a message and I’ll talk you through it.
Because sometimes, getting insured is the easy part. Paying for it the smart way - That’s where it gets interesting.
The short answer is - Yes. But, as always, it’s not quite that simple.
Let me give you an example:
The client is a UK-based entrepreneur. Single director of a Ltd company. Decent profits. He wants a proper international policy for himself, his wife, and their two kids. The quote for the “all bells and whistles” was just under £12,000 a year. So naturally, his first question was:
“Should I pay personally or run it through the company?”
The good news - you can absolutely run it through the company.
The even better news - it can be more tax-efficient than paying from your personal bank account.
Here’s how it works (and where people often get confused):
If the company pays, then this premium is treated as a business expense, so it reduces the company’s taxable profit (saving you 19–25% Corporation Tax). HMRC sees this as a Benefit-in-Kind (BIK), since you’re personally benefiting from it. This means:
- You pay Income Tax on the premium value (based on your bracket)
- The company pays Class 1A NICs (currently 15%) on that same amount and report it through a P11D or via payroll
Still with me? Good. Because here’s the point:
In most cases, despite additional expenses this approach STILL works out cheaper than paying for the same policy from your post-tax income you make in the UK.
Why?
Because if you do, then you will really need to draw out approximately £18k–£22k gross (depending off course on how you are paying yourself) to afford that £12k premium, BUT if you do end up paying this way, then there will be NO Corporation Tax relief, NO efficiencies, so most people say - No, thank you, I will use my business for paying for this plan.
BUT (and this is important)…
Before you will even consider switching payment method on your Bupa Global or Cigna policy – SPEAK TO YOUR ACCOUNTANT!!!
Seriously. This post isn’t tax advice. Your accountant is the only person who can confirm if this approach IS suitable in your specific circumstances. Some structures (especially if you’re doing salary sacrifice, mixing in dividends or have foreign personal incomes) have additional quirks.
What I CAN say, is that when done right, this setup may save you thousands per year while keeping everything compliant and clean. So yes — your Ltd company can pay for your international medical insurance. And no, it doesn’t mean triggering a tax apocalypse.
You just need:
- The right insurer who supports company billing
- The right structure
- And the right accountant, who understand this topic well and be able to do it correctly without additional migraines
Need help with IPMI policies? Drop me a message and I’ll talk you through it.
Because sometimes, getting insured is the easy part. Paying for it the smart way - That’s where it gets interesting.