Income protection insurance is a form of insurance that pays out if you become ill for an extended period of time. In total, the employer's premiums are tax-deductible, and the employee's payout is taxable via PAYE. The IPA taken by an individual is not tax-deductible but a business owner can get corporation tax relief against their income protection premium.
On the other hand, when the employee gets the payout through this policy, the payout is not tax-free.
OriginalSource:-https://www.quora.com/Is-income-protection-insurance-a-tax-deduction/answer/Ranjit-Singh-3890
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