director employee of a PVT Ltd company: Can my company pay VHI premium for my family?

[kollurub]

Hi I am the director employee of a PVT Ltd company!

VHI insurance premium is coming around 2196 pa for my family. Please can anyone help me to know if the company can pay this premium? Is it deductible from corporation tax / VAT?

Appreciate your suggestions?

Regards
K

 

[WindUp]

I would think the company can pay it & allow it against CT - There is no VAT on Medical insurance. You will be liable to tax/prsi on the BIK

I know of multinationals who cover employees family Medical ins

 

[kollurub]

I hope there is no upper limit for the ltd company for the premium payment. Thanks Windup.

 

[Panacea]

Company can pay the premium but you need to gross it up (as the premium is net of tax credit at source) and treat the gross premium as a BIK.

As the premium paid is net the company will have to gross the premiums paid up in your trading accounts and pay the tax due as income tax by the due date.

At the end of the year remember to include the gross premium on your tax return as you will get a reduction in your total tax liability equal to the tax credit.