Pay for health insurance through your limited company
Let your limited company pick up the bill. Director health insurance turns private medical cover into an allowable business expense, cuts your corporation tax bill, and gets you and your family seen privately — fast.
- Allowable business expense — cuts the corporation tax bill
- Compare Bupa, AXA, Aviva, Vitality, WPA & The Exeter
- Cover for you, your spouse and children
- Set up cleanly via P11D — accountant ready
Health insurance, paid by your limited company
If you run a limited company, paying for private health insurance through the business is one of the smartest perks you can give yourself. Director health insurance — sometimes called company director health insurance, business health insurance or PMI for limited company owners — lets your limited company pay the premiums, cuts NHS waiting times for you and your family, and unlocks fast access to private healthcare.
This guide explains how it works, what it costs, the tax position, and how to compare director health insurance quotes from leading UK insurance providers.
What is director health insurance?
Director health insurance is private medical insurance taken out and paid for by a limited company on behalf of one or more directors. Instead of paying for cover personally from post-tax income, the limited company pays the premium directly — which can be far more efficient, especially for a one-person limited company.
The cover itself is the same private health insurance you would buy as an individual: it pays for private medical treatment, specialist consultations, diagnostics, surgery in a private hospital and, on most modern policies, mental health support. The difference is who pays — and how that payment is treated for tax.
Why should your limited company pay?
Two reasons: speed and money. NHS waits for elective treatment have become long, and a private medical insurance policy gives you fast access to private healthcare so you can get back to running the business. For a director whose income depends on being well, that protection is the whole point.
The financial case is strong too. Premiums paid through your limited company are usually an allowable business expense, which reduces your corporation tax bill. Even after the personal tax cost of the benefit, paying for your medical insurance through the company is normally cheaper than paying for it personally.
How does it actually work?
The mechanics are simple. Your limited company takes out a private medical insurance policy in the company's name, listing you (and optionally your family) as the insured. The company pays the premium each month. You then claim against the policy in the normal way when you need private medical care.
Because the company pays the premium, it counts as a benefit in kind. That has to be reported, but the way director health insurance works in practice is well-trodden — every accountant has dealt with it. A specialist broker can set the policy up so the cover, the company and your personal tax position all line up.
What does private health insurance cover for company directors?
A modern private health insurance policy covers the cost of private medical treatment that the NHS cannot deliver quickly enough. Most insurance policies include outpatient limits, hospital lists and an excess.
Inpatient & day-patient
Hospital stays, scans, surgery and aftercare in a private hospital — the core of every policy.
Outpatient
Consultant appointments, diagnostic scans and physio without staying overnight — useful for routine specialist referrals.
Cancer & mental health
Most plans now include full cancer cover and mental health support — therapy, counselling and inpatient treatment where needed.
Dental & optical add-ons
Layer on dental, optical and therapies if you want. Every policy has its own quirks — read the schedule or ask a broker.
Is director health insurance tax deductible?
Yes — for the company. Health insurance premiums are an allowable business expense for your limited company, so the cost reduces taxable profit and therefore your corporation tax bill. That is the part most directors get excited about.
The picture is different on the personal side. Because the company pays the premium, HMRC treats it as a benefit in kind, and you pay income tax on the value. The company also pays Class 1A National Insurance contributions on the same value.
What's the P11D position?
When the limited company pays the premium, the benefit is reported each year on a P11D for the director. The P11D shows the cash-equivalent value of the benefit — basically the premium paid by the company — and HMRC uses that figure to charge income tax on the value to you.
The company then pays Class 1A National Insurance on the same P11D figure, currently at the prevailing employer rate. Your accountant will file the P11D and adjust your personal tax code automatically. None of this is difficult — it just needs doing properly each year.
How much does it cost?
The honest answer is "it depends". Cost is driven by your age, postcode, smoker status, level of cover, excess and whether you take moratorium or full medical underwriting. As a rough guide, a healthy 35-year-old director might pay £40–£70 a month, while a 55-year-old might pay £100–£200.
Group health insurance for a small team can be cheaper per head than individual cover, and SME schemes often include extras a personal policy would not. Always compare quotes from at least three insurance providers — premiums for identical cover can vary by 30% or more.
The difference between personal and business health insurance
The cover can be identical — the difference is purely who pays and how it is taxed. For most limited company directors, paying premiums through the limited company beats paying personally on a like-for-like basis.
Personal health insurance
Paid from your post-tax income
- ×Paid from net income — you've already paid tax on it.
- ×No corporation tax saving for the company.
- ×No P11D admin — nothing to report.
- ✓Simpler if your business is non-trading or pre-revenue.
Business / director health insurance
Paid by the limited company
- ✓Allowable business expense — cuts your corporation tax.
- ✓Company effectively earns less to fund the same cover.
- ✓Includes spouse and children at small extra cost.
- ✓Usually cheaper net-of-tax than personal cover for trading companies.
Should you choose moratorium or full medical underwriting?
There are two main underwriting bases on a new private medical insurance policy. A specialist broker will steer you towards the right one based on your health and the type of cover you need.
Fast set-up, conditional cover
Excludes any condition you've had in the last five years until you are clear of symptoms and treatment for two continuous years. No medical questions at the start — the policy goes live almost immediately.
Slower set-up, certainty on day one
The insurer asks for your full medical history up front and either covers, excludes or rates each condition. Takes longer to set up but you know exactly what's covered from day one.
How do you compare quotes?
Start with cover, not price. Compare hospital lists, outpatient limits, mental health cover, cancer cover and excess level across the leading UK insurance providers — Bupa, AXA, Aviva, Vitality, WPA and The Exeter all sell director health insurance. Then look at price.
A specialist broker can compare director health insurance quotes from every major insurer in one go, explain the small print, and structure the policy correctly inside your limited company. Brokers are paid by the insurer — going through one does not push up your premiums.
The best UK providers for company directors
There is no single "best" insurer — only the best fit for you. The right answer depends on your age, health, family, location and budget.
Strongest brand & biggest network
Largest UK hospital network and the most-recognised brand. Strong digital tools and a deep specialist directory.
Strong on outpatient
Generous outpatient cover and direct routes to specialist consultations — useful for diagnostic-heavy needs.
Often best value
Frequently the keenest pricing on standard director plans, especially for healthier policyholders under 50.
Rewards healthy living
Premium discounts, gym links and wearable-driven rewards. Premiums fall the more you engage with the programme.
Flexible & transparent
Highly modular — pick exactly the components you need. Strong on transparent pricing and underwriting flexibility.
Sharp on small companies
Often wins on price and underwriting flexibility for one-person and small limited company directors. Worth a quote.
Ready to compare director quotes?
Tell us about your company and what you'd like to cover. We'll come back with side-by-side quotes from every major UK insurer — usually within one working day.
Things to remember
Director health insurance lets a limited company pay for private health insurance on behalf of a company director.
The company pays the premium and treats it as an allowable business expense — reducing the corporation tax bill.
The director pays income tax on the benefit via the P11D, and the company pays Class 1A National Insurance.
For most limited company directors, paying through the company beats paying personally.
Cover is identical to personal PMI — private hospital access, specialist care and mental health support.
Choose between moratorium and full medical underwriting based on your health history.
Always compare director health insurance quotes from at least three of the leading UK insurance providers.
Use a specialist broker to set the policy up correctly inside your limited company.
Director health insurance, answered
Can a one-person limited company really pay for health insurance?
Yes — absolutely standard. One-person limited companies (contractors, consultants, owner-managed businesses) routinely pay for director health insurance through the company. The tax treatment is the same as for a larger firm: allowable business expense, P11D on the director, Class 1A NI for the company.
Can my spouse and kids be covered too?
Yes. Most director policies let you add a spouse and children at a small extra cost. Whether you put their part of the premium through the business depends on whether they're employees or directors of the company — speak to your accountant on the cleanest structure.
How much income tax will I actually pay on the benefit?
You'll pay income tax at your marginal rate on the cash-equivalent value of the premium. So if the company pays £1,200 a year and you're a higher-rate taxpayer, you'll pay £480 in income tax on it. The company saves more in corporation tax than you pay in personal tax for most directors — net cost is lower than paying personally.
Will my accountant know how to handle it?
Yes — every accountant handles P11Ds and Class 1A NI as part of normal year-end work. You just tell them you've taken out director health insurance, give them the annual premium, and they'll do the rest.
Should I take moratorium or full medical underwriting?
If you're young, healthy and want cover live this week, moratorium is fast and cheap. If you have ongoing conditions you want covered, full medical underwriting gives you certainty on day one. A broker will steer you to the right one for your circumstances.
How fast can a director policy be set up?
Moratorium policies can be live within a week. Full medical underwriting takes longer — typically 2–4 weeks because the insurer needs to review your medical history.
What happens if I close the company?
Most policies can be transferred to a personal policy on the same underwriting basis — you don't lose your cover. A broker will handle the transfer cleanly so there's no break.
Does using a broker cost extra?
No. Insurers pay your broker. The price of your policy is the same whether you go direct or through a broker. The benefit of a broker is they shop the whole market for you and structure the cover correctly inside the company.
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