Would you like to make nearly 50% tax savings & reward your employee's?

DOES YOUR FINANCIAL YEAR END IN MARCH?

Most companies will be reviewing and tidying up their financial affairs before 31st March financial year end. *

March is by far the most popular choice for a company's Account Reference Date (ARD), more commonly referred to as the Financial Year End. This March there will be a multitude of year-end tax planning opportunities created - more than three times as many as most other months.

PLANNING STARTS NOW

Traditionally firms may have used this period to consider capital expenditure, budgets, investments and pension planning. However, with an increased focus on staff relations and bespoke benefit packages, perhaps this year it is time to consider the life insurance benefits that businesses can offer to their staff and dependants.

One tax-efficient option available is the Relevant Life Policy.

Whilst conventional 'death in service' schemes can meet this need, those employers seeking extra flexibility often consider Relevant Life Policies as an alternative. These plans are individual life policies taken out by an employer on the life of an employee for the benefit of their family.

WHY VITALITY LIFE'S RELEVANT LIFE POLICY?

With our Relevant Life Policy, employees get life insurance as well as access to a range of discounts and rewards that mean they don't need to claim to benefit from the policy. We give employees discounts on things that help them get healthy, like health screenings and stop-smoking sessions as well as rewards such as monthly cinema ticket at Cineworld and Vue and a drink/coffee each week for getting active.

THIS FORM OF LIFE COVER IS IDEAL FOR

• Employers with an insufficient number of employees to qualify for a group life scheme.
• Employers who wish to provide enhanced employee benefits to certain employees, with the possibility of variable and high value cover. This can be offered over and above the company death in service scheme.
• Company Directors wishing to provide increased Life Insurance benefit for their own families.

LEGISLATION TIGHTLY DEFINES WHAT RELEVANT LIFE POLICIES SHOULD LOOK LIKE, THEY MUST BE:

1. Single life

2. Term assurance and end before the age of 75

3. Established in a Relevant Life Policy trust at outset to ensure the benefits do not fall back into the estate of the deceased

BENEFITS OF RELEVANT LIFE POLICIES

1. Available to all employees - including shareholding directors employed by limited companies
2. Not considered a benefit in kind for the employee
3. No National Insurance liability for the employee or the employer
4. Premiums paid by the employers are deductible as a business expense, reducing the corporation tax liability
5. Any benefit paid out is not liable to inheritance tax
6. In many instances, for large and small companies, there is no better or more cost-effective way to provide life cover for employees

Choosing to pay the contributions on an annual basis with Vitality not only attracts a 4% discount on the monthly alternative but allows the employer to immediately deduct the total annual cost from its impending year-end calculation.

Contact Angela on 07857 010262 for more information and to discuss how we can help you to get this set up before your financial books close!