If you are looking for health insurance, you’ll need to know the best way to pay for it. It’s a simple question for large SME or corporate businesses, but what if you are a one-man band? Company-funded health insurance is popular in the UK marketplace.

There are many small companies registered in the UK. Even sole traders or partnerships that have private medical insurance can use their business bank account to pay for the policy.

Whether you require a small or large private medical insurance scheme, your business can fund your policy.

Do you want company-funded health insurance?

Importantly, you need to find out about tax liability. Yes, the policy is likely to be classed as a business expense but, equally, employees will be liable to pay P11d to HMRC for the benefit in kind. You must declare private medical insurance to pay the right amount of tax. It is worth making sure your staff want to be part of a policy of this type. You can give them the option to opt out of the company-funded health insurance. Your accountant will be able to tell you if you can claim your policy as a business expense. You need to ensure that you are accounting for the premiums in the right way.

Can I pay for a consumer health insurance policy from my business?

Yes, you can. Because UK health insurers want to help clients and be flexible, in most cases a consumer health insurance can have a third-party payer and, on this basis, you can therefore have company-funded health insurance. Work with a specialist health insurance broker to ensure your policy is set up correctly. Alternatively, you could buy a 1-member company policy. Your business does not have to be a Ltd company, although obviously it’s easier to prove you are a trading entity if it is.

Do I need a company or consumer private medical insurance policy?

As a business with 1 employee, both options are available; however, you might have more options available to you as a consumer. Not all insurance companies offer company-funded health insurance for 1 member. If you are expecting to recruit employees to grow your business, taking a company policy might be the right choice for you. Think about your long-term plans and make this part of your decision process.

The team at Ascend Health can help you find the right policy, first time. Additionally, we will provide you with a range of options from our panel of providers. Above all, your requirements are the foundation of our review. If you are a happy client, we have done our job correctly! Ensuring you can claim when you need medical treatment is key and there is no advantage in paying for benefits that you cannot use.

You can contact us by telephone on 01245 929129 or by email, enquiries@ascendhealth.co.uk