Trivial benefits are one of the simplest ways to reward employees and directors without creating a tax liability, yet many business owners either overlook them or are unsure how the rules apply in practice.

In this article, we explain everything you need to know about trivial benefits, including what they are, how they work, what directors can claim, and how to use them correctly, especially as the tax year comes to an end.

What are trivial benefits?

A trivial benefit is a small, non-cash gift that a business can give to an employee or director. When certain conditions are met, these benefits are not taxable, nor subject to National Insurance, and do not need to be reported to HMRC.

This makes trivial benefits a simple and tax-efficient way to reward people without complicating payroll or creating unexpected tax bills.

What counts as a trivial benefit?

To qualify as a trivial benefit, the gift must meet a clear set of rules set by HMRC. The cost of the benefit must be £50 or less, and it must not be provided in cash or as a cash voucher. It also cannot be a reward for work or performance, and it must not form part of an employee’s contract or salary package.

In practice, this means the benefit should feel like a genuine gesture rather than a form of payment. If it is given as part of someone’s expected earnings or tied to their role, it will not qualify.

Examples of trivial benefits

Many everyday workplace gestures fall within the definition of trivial benefits. Common examples include giving a gift voucher for a birthday, sending flowers to mark a personal milestone, or providing a small hamper or bottle of wine at Christmas.

Whatever the reason for the gift, the key point to remember is that these benefits should be occasional, low in value, and not connected to an employee’s duties or performance.

Trivial benefits for employees

For employees, there is no fixed annual cap, although benefits must remain occasional and not form a regular pattern, and provided each one meets the qualifying criteria. This gives businesses flexibility to recognise personal events, celebrate milestones, or simply maintain a positive working environment.

Because these benefits are not taxed, they can often feel more valuable to employees than a small bonus would, while also being more cost-effective for the business.

Trivial benefits for directors

For directors of “close companies”, the rules are slightly different. While directors can still receive trivial benefits, there is an annual cap of £300 per tax year.

A close company is a company that is controlled by five or fewer shareholders, or by its directors. Most small limited companies fall into this category, which means the £300 annual cap on trivial benefits will usually apply to directors.

For example, this would allow for up to six separate benefits of £50 each, and if the total value of trivial benefits exceeds £300 in a tax year, the excess amount will become taxable.

This is an important distinction for owner-managed businesses, where directors may look to use trivial benefits as part of their wider tax planning.

What does not qualify as a trivial benefit?

Not all small gifts fall within the trivial benefits exemption. Gestures such as cash payments, bonuses, and anything that can be exchanged directly for cash will not qualify. The same applies to benefits that are linked to performance, such as hitting targets, or those that are written into an employment contract.

If a benefit forms part of someone’s expected reward for doing their job, it will be treated as taxable income rather than a trivial benefit.

Why timing matters, especially near the end of the tax year

Trivial benefits often become more relevant in the weeks leading up to the end of the tax year (5th April) as businesses review their finances and look for tax-efficient opportunities.

For directors in particular, as the allowance for trivial benefits run throughout the financial year (6th April to 5th April), not the business year-end, this means that now is the time to make use of the £300 annual allowance before it resets. If it has not been used during the year, there may still be time to take advantage of it.

Planning ahead helps ensure that you stay within the rules while making the most of the available allowances.

How to record trivial benefits correctly

Although trivial benefits are not taxable, it is still important to keep a basic record of what has been provided. This should include details such as the cost, the date, who received the benefit, and the reason it was given.

Keeping clear records helps demonstrate that the benefit meets HMRC’s criteria and provides reassurance if questions are ever raised.

Why trivial benefits are worth using

Trivial benefits are often overlooked, but they can play a valuable role in both tax planning and employee engagement, as they allow businesses to reward people in a simple and cost-effective way, without increasing tax exposure.

For directors, they offer a straightforward way to extract small amounts of value from the company tax-free, and for employees, they help create a more thoughtful and positive workplace culture.

Need help with trivial benefits?

If you are unsure whether something qualifies as a trivial benefit, or how the rules apply to your business, it is always worth checking.

At GLX, we support business owners with clear, practical advice on tax, rewards, and compliance. Get in touch with our team today for further guidance.

The 2026 Spring Statement mainly provided an economic update rather than major tax changes, with no significant business or personal tax announcements.

2026 Spring Statement: A Summary

• Economic growth forecast reduced
• Growth expected to improve in later years
• Inflation expected to fall to around 2.3%
• Vehicle Excise Duty rising with inflation
• Electric vehicles beginning to pay road tax
• Improved fuel price transparency

The 2026 Spring Statement was delivered on 3^rd March by The Chancellor, Rachel Reeves, providing an update on the UK economy and the government’s public finances.

The chancellor previously announced that the Autumn Budget would account for any major policy changes, leaving the Spring Statement to be more of a financial check-in to assess how the economy is performing, and whether the government remains on track to meet its fiscal goals.

Here’s a summary of what was announced and what it may mean for you.

What is the 2026 Spring Statement?

In recent years, the government has moved towards having one major fiscal event per year, the Autumn Budget, where most tax and spending changes are announced.

The Spring Statement therefore acts as an economic update rather than a policy event. It allows the Chancellor to respond to the latest economic forecasts from the Office for Budget Responsibility (OBR), which independently assesses the UK’s economic outlook and public finances.

For businesses and personal taxpayers, this update can still be important because it:

• Signals how the economy is performing
• Highlights risks or pressures on public finances
• Provides clues about what could appear in the next Autumn Budget

Key economic updates from the 2026 Spring Statement

The Office for Budget Responsibility published updated forecasts alongside the statement.

Key points include:

• Economic growth forecast reduced – UK GDP growth is expected to be around 1.1% in 2026, slightly lower than previously predicted.
• Growth expected to improve in later years, reaching around 1.6% in 2027 and 2028.
• Unemployment is expected to rise slightly, peaking at around 5.3% before falling again later in the decade.
• Inflation is expected to fall to around 2.3%, closer to the Bank of England’s target of 2%.
• Government borrowing is forecast to fall gradually over the coming years.

However, the outlook remains uncertain. Global events, particularly geopolitical tensions and energy price volatility, could still affect inflation and economic growth in the UK. The recent events in the Middle East were not taken into account in their predictions.

What tax changes were announced?

As expected, the 2026 Spring Statement did not introduce major tax reforms which will provide some relief to businesses and individuals alike. However, there were a number of updates and policy confirmations: 

Fuel duty

The temporary 5p per litre fuel duty cut will remain in place until August 2026, before gradually increasing in stages thereafter.

Vehicle taxes

From April 2026:

• Vehicle Excise Duty will rise in line with inflation
• Electric vehicles will begin paying standard VED charges
• The threshold for the expensive car supplement will increase from £40,000 to £50,000.

For company car users, electric vehicle Benefit-in-Kind tax will increase from 3% to 4%. Our guide to buying or leasing company cars provides more information on this.

Fuel price transparency

A new Fuel Finder scheme will require petrol stations to publish live fuel prices to help drivers compare costs more easily.

Digital driving licences

The government also confirmed plans to expand trials of digital driving licences, accessible via the GOV.UK app.

What wasn’t announced

For many individuals and businesses, what didn’t happen may be just as important as what did.

In line with the government’s commitment to one main fiscal event per year, this means that the 2026 Spring Statement did not announce any significant changes.

This relative stability provides some certainty for businesses and individuals in the short term, although policy changes may still appear later in the year. Businesses and individuals alike will hope that the stability suggested by the chancellor in the Spring means any changes in the Autumn Budget will be less significant.

What does this mean for businesses and individuals?

While the 2026 Spring Statement didn’t introduce new tax rules, it still offers insight into the economic environment businesses are operating in.

Key takeaways include:

• A cautious economic outlook: Growth remains relatively modest, which may continue to influence business investment and consumer confidence.
• Continued pressure on public finances: Government borrowing is expected to fall, but the tax burden is projected to remain historically high as the government works to reduce debt.
• Potential changes later in the year: The Spring Statement often hints at areas where policy could change in the future. Businesses should therefore keep an eye on developments ahead of the Autumn Budget, when the government is more likely to introduce new tax measures.

The situation in the Middle East may impact the forecasts given in the Spring Statement, particularly in the Energy sector. Businesses should continue to monitor changes in a fast-changing landscape to ensure they stay on top of any relevant changes.

What should businesses do now?

For most businesses, the 2026 Spring Statement doesn’t require immediate action. However, it is still a useful reminder to:

• Keep financial plans under review
• Monitor changes to tax rules and government policy
• Prepare for potential updates in the Autumn Budget

How GLX can help

Understanding how government announcements affect your business can be challenging, especially when economic conditions are evolving.

If you are unsure of any of the tax rates changes coming into effect from April 2026, please do get in touch.

Making Tax Digital (MTD) for Income Tax is fast approaching, with the first phase taking effect from April.

With fewer than 50 days until implementation (at the time of writing), now is the time for affected individuals and businesses to ensure they understand their obligations and are prepared for the transition.

If you are unfamiliar with MTD, we recommend reading our previous articles, which outline the background and answer some of the most frequently asked questions:

• https://www.glx.co.uk/news/an-introduction-to-making-tax-digital/
• https://www.glx.co.uk/news/making-tax-digital-questions/

If you are continuing to read, it is likely that MTD will apply to you from April. The key question now is: what practical steps should you take?

1. Consider your obligations under Making Tax Digital for Income Tax

Under MTD, you will be required to keep digital records and submit quarterly updates to HMRC using compatible software.

There are a number of HMRC-approved software providers available. A full list can be found here:

https://www.tax.service.gov.uk/find-making-tax-digital-income-tax-software/how-will-you-use-it

The options we most commonly recommend are:

• Xero
  • A reliable, cloud-based accounting platform with excellent training resources. It is market-leading for good reason and offers a comprehensive solution for businesses seeking robust reporting and scalability.
• Dext Prepare
  • A simpler option, particularly well suited to sole traders and smaller businesses. It allows you to photograph receipts and link your bank account, helping to reduce manual input and streamline record-keeping.
  • It is also possible to use spreadsheets, provided they are structured correctly and integrated with compatible bridging software.

The right solution will depend on the size and complexity of your business, and how involved you would like to be in the day-to-day bookkeeping.

2. Enrol with HMRC

If you are required to join Making Tax Digital for Income Tax this year, you should either have received, or will shortly receive, a letter from HMRC confirming this.

We recommend enrolling well in advance of the 6 April deadline to allow sufficient time for setup and testing. You can register here:

https://www.gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax

3. Recognise the benefits

Although MTD will require more frequent submissions to HMRC, there are clear advantages.

Quarterly updates provide greater visibility over your tax position throughout the year, helping you plan ahead and set funds aside accordingly. Maintaining digital records in real time should also reduce the pressure traditionally associated with the January self-assessment deadline.

We recognise that this represents a significant change for many businesses. If you would like to discuss how Making Tax Digital for Income Tax will affect you, or would value support in selecting and implementing software, contact us today and our team would be pleased to assist.

If you run a business in the UK, you will often hear accountants talk about expenses and capital allowances. They sound similar, and both reduce your tax bill, but they work in very different ways.

Understanding the difference between expenses vs capital allowances helps you avoid overpaying tax, plan cash flow more effectively, and feel more confident about your business finances, especially in the early years.

What Are Business Expenses?

Business expenses are the everyday costs of running your business. These are usually regular payments that keep things ticking along and are used up within the year.

Typical examples include rent, utilities, phone and internet bills, marketing costs, accountancy fees, software subscriptions, and travel costs such as fuel or train fares.

For example, if you pay £30 per month for accounting software, that £360 for the year is normally treated as a business expense.

Expenses are usually deducted in full from your profits in the same accounting period. For example, if your business earns £50,000 and you have £5,000 of allowable expenses, you are only taxed on £45,000.

What Are Capital Allowances?

Capital allowances apply to larger purchases that are expected to last for more than one year. These are items that provide ongoing value to your business rather than being used up quickly.

This typically includes things like equipment, machinery, computers, office furniture, tools, and business vehicles. Instead of deducting the cost as an expense, the tax system allows you to claim tax relief through capital allowances.

In many cases, that relief can still be claimed immediately, but it is recorded differently in your accounts.

Why Capital Items are Treated Differently

HMRC treats capital items differently because they are not short-term costs. A laptop, for example, might be used for three or four years, and office furniture may last much longer.

Rather than distorting one year’s profits, capital allowances spread or structure the tax relief in a way that better reflects how the asset is used by the business.

For example, you buy a laptop for £1,200 to use exclusively for your business. This would not usually be classed as a normal expense, instead, it would fall under capital allowances.

However, most businesses can use the Annual Investment Allowance (AIA), which currently allows up to £1 million of qualifying purchases each year to be deducted in full. In this case, you could still reduce your taxable profits by the full £1,200.

If your profits before the purchase were £45,000, they would reduce to £43,800 after claiming the allowance.

Expenses vs Capital Allowances: What’s the Difference?

The key difference comes down to how long the item benefits the business.

Expenses relate to day-to-day running costs. Capital allowances relate to assets that will still be in use in future years. Both reduce tax, but they appear differently in your accounts and are governed by different rules.

This distinction becomes particularly important when your business starts investing in equipment, vehicles, or premises.

Repairs, Replacements and Improvements

A common grey area is deciding whether something counts as a repair or a capital improvement.

If you are simply restoring something to its original condition, it is usually treated as an expense. For example, repairing a broken boiler or replacing damaged roof tiles would normally be allowable as a business expense.

However, if the work improves the asset beyond its original state, such as installing a more advanced heating system or adding air conditioning where none existed before, this may be treated as a capital improvement and fall under capital allowances.

Vehicles and Capital Allowances

Vehicles deserve special mention, as the rules are more complex.

Cars are treated differently depending on their emissions, whether they are new or used, and whether they are electric. Some low-emission or electric cars may qualify for 100% tax relief in the first year, while higher-emission vehicles may only attract relief at a much slower rate. For more information on buying and leasing company cars, read our article here.

Vans are often more straightforward and frequently qualify for full relief under the Annual Investment Allowance.

Why Getting This Right Matters

Classifying costs incorrectly can have real consequences. Claiming too much relief can lead to HMRC challenges, while being overly cautious can mean paying more tax than necessary.

It also affects how your business performance looks on paper, which matters if you are applying for finance, planning growth, or working with investors.

Getting the treatment right from the start keeps your accounts clean, consistent, and easier to understand.

How GLX Can Help

Differentiating between expenses and capital allowances is one of the most common areas where business owners feel uncertain, particularly when starting out or making new investments.

At GLX, we help you look at purchases in context, ensure they are treated correctly, and make sure you receive all the tax relief you are entitled to, without unnecessary risk.

Contact our team today for a free, initial, no-obligation conversation.

Deciding whether to buy or lease a company car is not just a practical choice; it is also a tax decision. The option you choose can affect your corporation tax bill, cash flow, and the total cost of running the vehicle through your business.

This guide explains the key differences between buying and leasing a company car, how the tax treatment works, and what business owners should consider before committing.

Buying a Company Car Through Your Business

When a company buys a car, either outright or using finance, the vehicle becomes a business asset. The way tax relief is claimed depends on whether the car is new or used, its CO2 emissions, and how it is financed.

Tax Treatment When Buying a Company Car

Brand new electric cars: If your company purchases a brand new, fully electric car, the full cost of the car can be deducted from taxable profits in the first year. This is known as a First Year Allowance. For many businesses, this makes buying a new electric car very tax-efficient as you do not have to spread the relief over several years.

Example: If your company buys a new electric car for £40,000, the company can deduct the full £40,000 from its profits in the year of purchase. At a corporation tax rate of 25%, this could reduce the tax bill by £10,000 in that year.

Used electric cars: Used electric cars do not qualify for the 100% allowance. Instead, tax relief is spread over several years, starting at 18% per year, and reducing each year thereafter. Business owners regularly overlook this difference when comparing new and used electric vehicles, as it is often assumed that all electric cars receive the same tax treatment.

Example: A used electric car that costs £30,000 may only give a tax relief of £5,400 in the first year, rather than the full amount.

Petrol and diesel cars: For petrol and diesel cars, tax relief depends on CO2 emissions:

• Lower-emission cars may qualify for 18% annual allowances.
• Higher-emission cars may be restricted to 6% per year.

This means that it can take many years to fully claim tax relief, making these vehicles less tax-efficient when bought through a company.

Buying With Finance: HP and PCP

Most businesses do not buy cars outright in cash. Two common finance options are Hire Purchase and Personal Contract Purchase:

Hire Purchase (HP): With HP, the company is treated as owning the car from the start. This means capital allowances can usually be claimed, including the 100% relief for new electric cars, and interest payments are typically allowable as a business expense.

Example: A new electric car bought on HP for £45,000 can still qualify for 100% tax relief in year one, even though the business pays for it monthly.

Personal Contract Purchase (PCP): PCP works slightly differently. While monthly payments are lower, ownership may not transfer until the final payment. The final balloon payment and ownership structure affect how capital allowances apply, so this option needs careful review before proceeding.

Leasing a Company Car Through Your Business

Leasing, often referred to as contract hire, means the business never owns the vehicle. Instead, it pays a fixed monthly amount to use the car for an agreed period.

Tax Treatment When Leasing a Company Car

Lease payments are usually treated as an ongoing business expense, which means that tax relief is spread across the life of the lease rather than claimed upfront.

For VAT-registered businesses, 50% of the VAT can usually be reclaimed on the lease payments, and 100% of VAT can usually be reclaimed on maintenance costs.

For many businesses, this provides predictable costs and steady tax relief each month. However, it does mean there is no large tax deduction in year one, even for electric vehicles.

There may also be restrictions on how much of the lease cost is tax-deductible for higher-emission cars.

Example: If your company leases a car for £500 per month plus VAT, the annual cost to your business is £6,000 plus VAT. The business can then usually reclaim £600 of the overall £1,200 VAT, and the remaining lease cost is deducted from profits over the year.

Practical Considerations With Leasing

There are some benefits to leasing a vehicle, as leasing arrangements often include servicing and maintenance, road tax, and breakdown cover. However, mileage limits will apply, and the charges for excess milage can be significant.

Benefit in Kind and Personal Use

If a company car is available for personal use by a director or employee, a Benefit in Kind (BiK) charge may apply. This is taxed personally and also attracts employer National Insurance.

Electric cars currently have much lower BiK rates than petrol or diesel cars, which is why they remain a popular choice for company vehicles. However, these rates are set to increase gradually over the next few tax years.

More significantly, there are planned changes from the 2028/29 tax year, which will affect the BiK treatment of electric company cars. While electric vehicles are still expected to remain more tax-efficient than petrol or diesel alternatives, the personal tax cost for drivers is likely to rise.

This is particularly relevant when entering into multi-year agreements, such as a three-year lease. The BiK rate in the final year of the lease may be higher than when the vehicle was first taken on, which can impact personal tax planning for directors and employees.

For this reason, it is important to consider not just today’s BiK rate, but how future changes could affect the overall cost of having a company car over the full term of ownership or lease.

Choosing the Right Option for Your Business

There is no single correct answer when deciding whether to buy or lease a company car. The most tax-efficient option depends on the type of car, how it is financed, how it is used, and the wider financial position of the business.

The examples in this article provide general guidance only. Specific advice will depend on your circumstances, including future plans, profitability, and personal tax exposure.

This is where GLX can help you with tailored advice, ensuring the decision supports both your business and personal finances.

For further advice on whether you should buy or lease a company car, contact our team today.

Understanding the difference between cash flow and profit can help you make better financial decisions and, although both are signs of how healthy your business is, they don’t always tell the same story.

What Is Profit?

Profit is what’s left after you subtract your costs from your income.

In simple terms: Profit = Income – Expenses

There are three main types of profit:

• Gross profit: what’s left after you take away the direct costs of producing goods or services (like materials or labour).
• Operating profit: the profit after all regular business costs, such as rent, wages, and insurance.
• Net profit: the final figure after everything, including tax and interest, has been deducted.

Profit is what appears on your profit and loss statement, and it shows whether your business model works over time.

However, you can be profitable on paper and still run into cash problems. That’s where cash flow comes in.

What Is Cash Flow?

Cash flow is the movement of money in and out of your business.

Positive cash flow means more money is coming in than going out. Negative cash flow means your expenses are higher than your income during a certain period.

Even a profitable business can experience negative cash flow if:

• Customers take a long time to pay invoices.
• You’ve purchased equipment or stock upfront.
• You’re growing quickly and spending before income catches up.

This is why understanding cash flow is essential for keeping your business running day to day.

The Key Difference Between Cash Flow and Profit

The main difference between cash flow and profit is that:

• Profit measures your overall financial performance.
• Cash flow measures your business’s ability to stay liquid and meet short-term commitments.

Profit is recorded when income is earned and expenses are incurred, even if the money hasn’t yet changed hands, and cash flow tracks when those payments happen.

A Real-Life Example

Imagine you invoice a customer £2,000 for a job. To complete the work, you had to buy materials costing £600. On paper, your profit is £1,400 which looks great on your profit and loss report however, you’ve given the customer 30 days to pay.

So while your accounts show a healthy profit, your cash flow is actually -£600 until the money arrives and you’re temporarily out of pocket, even though the job was profitable.

This is one of the most common issues small businesses face. They’re profitable on paper, but the timing of money coming in and out leaves them short when they need to pay suppliers, wages, or tax.

How Businesses Can Manage This Issue

There are practical ways to reduce cash flow pressure caused by timing:

• Take deposits upfront: For example, asking for 25–50% before starting the work helps cover materials and protects your cash position.
• Use staged or milestone payments: Instead of invoicing £2,000 at the end of a project, you might invoice £1,000 at the start and £1,000 on completion. This spreads risk and keeps cash moving.
• Shorten payment terms where possible: Moving from 30 days to 14 days can make a significant difference, especially for service-based businesses.
• Automate reminders and follow-ups: Many businesses suffer cash flow stress simply because invoices sit unpaid and unchased.

Why Both Matter for Your Business

If you only look at profit, you might think your business is performing well, but a cash shortage can stop you paying staff, suppliers, or taxes on time.

If you only look at cash flow, you might miss the bigger picture, like whether your business model is sustainable in the long run.

Keeping an eye on both gives you a full view of your financial health, which is why many businesses use management accounts and cash flow forecasts to monitor both regularly.

At GLX, we help business owners translate their numbers into clear insight. Whether you want to understand how cash moves through your business, or how profitable your operations really are, our team can guide you through it in plain English, and help you make confident, informed decisions about the future.

Companies House has announced that several of its statutory fees will increase from 1^st February 2026.

These changes form part of Companies House’s ongoing transformation under the Economic Crime and Corporate Transparency (ECCT) Act, which aims to strengthen the integrity of the UK business register and combat fraudulent activity.

Key Fee Changes

From 1^st February 2026, the following digital filing fees will apply:

• Company incorporation: increasing from £50 to £100

• Confirmation statement: increasing from £34 to £50

• Voluntary strike off: increasing from £8 to £13

A full list of all revised fees is available on the Companies House website.

Why the Changes Are Being Made

Companies House explains that its fees remain low by international standards, even after these increases. The income generated from these fees supports:

• The incorporation of companies and publication of reliable company information used widely across the UK economy.

• The implementation of new powers under the ECCT Act, which enable Companies House to query, challenge, and remove false or misleading information from the register.

• Enhanced enforcement activity, including funding for The Insolvency Service’s company investigation and director disqualification work.

What This Means for Businesses

The changes are part of a wider effort to build a more transparent and trustworthy marketplace for legitimate UK businesses. 

As part of this modernisation, compulsory identity verification will come into force from 18 November 2025, ensuring that individuals who set up or manage companies are verified. 

Companies House is also investing in modernised digital systems, additional staff, and improved tools to detect and prevent fraud more effectively.

While the upcoming increases may feel significant, they reflect a broader move towards greater corporate transparency and protection for genuine businesses.

How GLX Can Help

At GLX, we’ll continue to support our clients through these upcoming changes, from company incorporations and annual compliance filings to guidance on new identity verification requirements.

If you have any questions about how these updates may affect your business, please don’t hesitate to get in touch with your Client Manager.

As a director of a Limited Company, protecting both your business and your employees is vital. One way to achieve this is by putting the right insurance policies for directors in place. These policies can be paid through your Limited Company without triggering a benefit in kind, making them both practical and tax-efficient.

Why Insurance Policies for Directors Are Important

Running a Limited Company comes with responsibilities, not only to shareholders, but also to employees and their families. Having the right protection in place ensures financial security, supports business continuity, and helps attract and retain valuable staff.

In this guide, we’ll explain the most important insurance policies for directors, including Relevant Life Insurance, Death in Service cover, and Key Man Insurance.

Relevant Life Policy

What is a Relevant Life Policy?

A Relevant Life Policy is one of the most tax-efficient insurance policies for directors. It provides a death-in-service benefit for employees, including directors, by paying a lump sum to the insured person’s beneficiaries if they die or are diagnosed with a terminal illness while employed by the company.

Benefits of a Relevant Life Policy:

• Tax Efficiency: Premiums are usually eligible for Corporation Tax relief, reducing overall costs for the company.
• Employee Attraction and Retention: Including this policy in your benefits package makes your company more appealing to potential hires and helps retain existing employees.

Death in Service Insurance

What is Death in Service Insurance?

Death in Service cover is another valuable option when considering insurance policies for directors. It provides a tax-free lump sum to an employee’s beneficiaries if they pass away while employed by the company.

Benefits of Death in Service:

• Financial Security: Helps the employee’s family cover major costs such as mortgage repayments, funeral expenses, and day-to-day living costs.
• Cost-Effective: Offers high value at relatively low cost, making it an attractive benefit for employees.

Key Man Insurance

What is Key Man Insurance?

Key Man Insurance is a business insurance policy that provides financial protection to a company if a key person, such as a director or critical employee, passes away or becomes disabled.

Benefits of Key Man Insurance:

• Financial Protection: Provides a cash payout to offset lost revenue, cover recruitment costs, or support ongoing business operations.
• Business Continuity: Ensures the company can continue running smoothly despite the loss of a critical person.

Choosing the Right Insurance Policies for Directors

Each Limited Company is different, and the right cover depends on the size of your business, the nature of your work, and your long-term goals. By putting the right insurance policies for directors in place, you’ll not only protect your business but also safeguard your employees and their families.

If you require further information on the various insurances available to you as a director, please get in touch. 

This August marks a major milestone for us; it’s our 20th anniversary!

Watch our video below to hear our Managing Director, Jack Presland, reflect on our journey; from Graham Lewis’ vision when he founded GLX 20 years ago, to who we are today and the values that continue to drive us.

We would also like to take this opportunity to thank everyone who has been a part of our GLX journey to date.

We are extremely proud to be where we are, and we couldn’t have done it without our team, clients, and partners.

Here’s to the next chapter!

Following on from our introduction to Making Tax Digital blog, we’ve answered some of the most common questions we have been asked. Take a look at our FAQ’s below: