1. Let the Taxman help pay for your Life Insurance!
Limited Company Contractors can now save tax with company funded Life Cover. A new wave of life insurance cover “Relevant Life Policies” is grabbing the attention of contractors in a major way. If you’re a Limited Company director and you have a standard life insurance policy to protect your family, you’re paying more tax than you need to.
A Relevant Life Policy allows contractors to take advantage of a legal trust arrangement to deduct the corporation tax from the premiums, without any benefit in kind repercussions.
Some of the key benefits include:
- Premiums paid by the company are not treated as income
- Premiums may be allowable as a business expense
- Benefits are normally paid free of income and inheritance tax to your dependants
If you currently don’t have life cover or pay for your insurance through your personal account, then this could be the perfect policy. The advisors a Freelancer Financials can handle the complete application process from start to finish. If you wish to be contacted about Life Cover, please request a call back from one of our protection advisers or contact us on 0208 421 7999.
2. Protect yourself against Illness or Injury with an Income protection Policy
Can you survive on £81.60 per week if you are unable to work due to illness or injury? That’s what contractors are entitled to through state benefits. We strongly recommend that all self-employed contractors should protect themselves against possible loss of income due to ill health.
A Contractor Income Protection Policy will pay (tax free) up to 65 percent of your monthly income to protect you if you are unable to work.
3. Time to Remortgage if you’re sitting on a standard variable rate
If you’re on a standard variable rate, it may be a good time to consider remortgaging. Those contractors with a low Loan-to-value mortgage can potentially reduce their monthly payments by switching lenders. In recent weeks, wholesale mortgage rates have increased due to concerns over the Eurozone crisis. Although this in unlikely to affect the Bank of England base rate, it will probably force those lenders with limited funds to increase their standard variable rates (SVR).
Switching your mortgage as a contractor is much simpler than you think, we can secure you competitive rates from a number of high street lenders (or even your existing lender) based on your contract rate alone.
For more information on contractor mortgages contact Freelancer Financials on 0208 421 7999.