C
carlovian
Guest
Hi,
I'm new to askaboutmoney, so apologies if this has been asked already. I have done a thorough search but haven't found the answer.
I've just gone into self-employment after a redundancy last year. I want to set up PHI through the new company and have the option of setting up an executive plan (i.e. paid directly by the company). However, my thinking is that I'd be better off paying it out of my own income, based on the following assesment:
If it's paid from my income I can avail of the income tax relief. So, if I pay myself, say, €100/month extra from the company to cover it, I get €100 of cover and get €40 back in tax relief. But if the company pays directly, I get €100 of cover, but no income tax relief. In both cases, the cost to the company is the same and it's saving €100 in corporation tax.
Is this correct?
[BTW I must thank the various contributors who have given some very good advice on the subject to help steer me in the right direction, particularly in the Key Posts.]
I'm new to askaboutmoney, so apologies if this has been asked already. I have done a thorough search but haven't found the answer.
I've just gone into self-employment after a redundancy last year. I want to set up PHI through the new company and have the option of setting up an executive plan (i.e. paid directly by the company). However, my thinking is that I'd be better off paying it out of my own income, based on the following assesment:
If it's paid from my income I can avail of the income tax relief. So, if I pay myself, say, €100/month extra from the company to cover it, I get €100 of cover and get €40 back in tax relief. But if the company pays directly, I get €100 of cover, but no income tax relief. In both cases, the cost to the company is the same and it's saving €100 in corporation tax.
Is this correct?
[BTW I must thank the various contributors who have given some very good advice on the subject to help steer me in the right direction, particularly in the Key Posts.]