What is Taxation of Premiums and Benefits ?

Posted by admin On December 24th 2020

Premiums are themselves subject to insurance premium tax, but benefits are paid out free of tax. Employers who contribute to PMI on behalf of their employees are able to claim the cost as a deduction against corporation tax, as above.

Employer contributions are regarded as a benefit-in-kind as far as the employee is concerned, and are therefore taxable.