A relevant life premium paid by your company, against the company profit needed to pay the same premium yourself from a dividend or a salary.
Put in the premium you have been quoted. The calculator works out how much company profit it takes to pay that premium three ways: by the company under a relevant life policy, by you from an extra dividend, and by you from extra salary.
Paid by the company, the premium is normally an allowable business expense, subject to the wholly and exclusively test, and normally not a taxable benefit for you. HMRC's wording on the benefit is that an exemption may apply depending on the circumstances, and the result states that assumption.
Paid by you, the premium comes out of income that has already been taxed. The calculator grosses it up through your income tax at the rate your other salary and dividends put you on, then through corporation tax or employer National Insurance. 2026/27 rates for England, Wales and Northern Ireland, checked on gov.uk on 13 October 2026.
It cannot tell you what cover would cost, which depends on your age, health, whether you smoke, the amount and the term. It cannot tell you whether HMRC would accept the deduction for your company, or how a policy would sit alongside cover you already hold.
This is information. It is not a personal recommendation. Whether any of it is right for you depends on your circumstances. Tax treatment depends on your circumstances and on current rules, which can change. The Financial Conduct Authority does not regulate tax advice.
It has to be provided by an employer for an employee, so a salaried director qualifies. Sole traders, equity partners and members of an LLP do not, because they are not employees.
Normally not. HMRC's wording is that an exemption may apply depending on the circumstances, so it is not automatic.
Premiums depend on your age, health, whether you smoke, the amount of cover and the term. Use a premium you have been quoted.
It is individual death in service cover a company buys for an employee or director, where there is no group scheme.
Read the answer →Employer cover is set against your salary, ends when the job does, and is not worked out from what your household would need.
Read the answer →The same company profit paid into your pension, as salary or as a dividend, and what each route leaves you after tax.
Work it out →Debts to clear, plus the income that would have to be replaced, less what is already in place.
Work it out →The tax on the gain from selling your shares, with Business Asset Disposal Relief at 18% up to the £1 million lifetime limit.
Work it out →The first conversation takes about twenty minutes and is at no cost to you. Tell us what is on your mind: a pension you have lost track of, a fixed rate ending, a will you keep meaning to write.