PRIVATE PRACTICE PROFIT PROTECTION
Could your practice
save tax and
protect its
profits?
Company-paid profit protection with Corporation Tax relief on qualifying premiums.
Your company owns the cover, pays the premiums and receives the benefit if illness or injury stops you working. Claim benefits are taxable trading income.
Calculate my illustrationSee your figures first. No contact details needed.
Your company funds the coverProtection arranged around your private practice.
The benefit goes to the businessSupport when the insured surgeon cannot work.
Explore Corporation Tax savingsQualifying profit-protection premiums are deductible.
THE COMPANY-PAID ADVANTAGE
Protect your profits.
Claim relief on the premiums.
For cover arranged solely to replace lost trading income, qualifying premiums are deductible business expenses. They reduce your company’s taxable profits and its Corporation Tax bill.
The benefit belongs to your business. Claims paid to the company are taxable trading receipts. The calculator shows a benefit before tax; it does not show a tax-free payout or calculate the tax saving on your premiums.
How the tax treatment works ↓PROTECT WHAT YOUR WORK MAKES POSSIBLE
Your NHS income and your
practice’s profit are different.
You may take little or no salary from your private practice and leave profits in the company. The value of that business still depends on your ability to work.
This review starts with the gross profit you generate for the practice. Alongside it, Relevant Life offers a way to fund family life cover through the company and explore the tax savings on those premiums.
YOUR PRACTICE, YOUR FIGURES
See what profit protection
could look like.
- 1Your profit
- 2Your practice
- 3Your review
EXAMPLE · BASED ON THE FIGURES SHOWN
Illustrative monthly benefit
paid to your company
£15,625
£187,500 a year, before tax
- Gross profit generated by you
- £250,000
- Illustration rate
- 75%
- Annual limit used
- £250,000
Your illustration has reached the annual limit used by this calculator. A review can explore the remaining exposure.
Your inputs have changed. Calculate again to update these figures.
An illustration of possible cover, not an entitlement or quotation. The amount available depends on the insurer, your role and accounts, existing cover and underwriting. Waiting periods and payment periods are agreed as part of the policy.
Calculate using your figures to continue.
How this illustration is calculated
Your annual practice gross profit × the share generated by you × 75%, subject to the £250,000 annual limit used here. We divide the annual illustration by 12 to show a monthly figure. The standard share is 100%.
This is a level-cover illustration based on the published gross-profit route for key person income protection. Limits, payment periods, definitions and increasing-cover options differ between insurers. Actual cover will be established through advice; existing policies can affect the amount available. Figures do not estimate premiums, tax savings or money already held in the business.
Basis checked on 22 October 2026: Legal & General and Royal London.
02 / YOUR PRACTICE
A little context
for your review.
Keep the focus on your private practice. You don’t need to tell us your NHS salary, dividends or medical history.
03 / YOUR REVIEW
Talk through your
practice’s protection.
A focused conversation with Mike Cooke about protecting practice profits, company-paid life cover and the tax treatment of each.
ENQUIRY RECEIVED
Thank you. Your enquiry has been received.
A saved enquiry does not confirm an appointment.
This opens the real booking page. Selecting a slot is separate from confirming an appointment.
I take little or no salary. Is this still relevant?
Yes, this review starts with the gross profit you generate for the business. It does not require a salary or dividend figure. The adviser will establish the company’s need and the appropriate policy structure.
Does this protect the cash already in my company?
The focus is future gross profit that depends on you being able to work. It is not insurance for accumulated cash, investments or the value of shares.
Who pays for the cover and receives the benefit?
With company-owned key person income protection, the business pays the premiums and receives any benefit under the policy. The benefit can help the business manage the financial impact when the insured key person cannot work through illness or injury.
How do the premium deduction and taxable benefit work?
For qualifying company-owned protection arranged solely to meet lost trading income, premiums are deductible and policy benefits are taxable trading receipts. HMRC’s guidance covers loss of profit arising from death, critical illness, sickness, accident or injury, subject to the conditions for the policy.
The trading purpose matters: company ownership alone does not establish relief. Cover for a capital or personal purpose, or with investment content, has different treatment. For shareholder-directors, we establish and document the policy’s business purpose; a shareholding is not an automatic exclusion under HMRC’s guidance.
Read HMRC’s rules for premiums and trading receipts and HMRC’s guidance on policy purpose. The recommendation and your accountant’s assessment confirm the treatment for the arrangement.
Does the calculator also illustrate critical illness cover?
The calculator illustrates monthly key person income protection. A separate critical illness policy pays a lump sum on a qualifying diagnosis. Both can be considered when reviewing the protection of your practice’s trading profits, but the 75% monthly-benefit illustration does not calculate a critical illness lump sum.
What about Relevant Life or my personal income?
Relevant Life provides company-paid life cover for your family or dependants through a trust, with Corporation Tax relief on qualifying premiums. It is separate from the profit-protection policy that pays the business. Personal or executive income protection can be discussed if protecting earnings you take personally is also a priority.
When would a policy start paying?
A claim must meet the policy’s incapacity definition and chosen waiting period. Payment duration, limits and return-to-work provisions vary. A personal recommendation will explain these details before you apply.