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Post Info TOPIC: Sage Nominal Code


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Sage Nominal Code


Can anyone tell me what Nominal Code I should use for Directors' life insurance.

 

Thanks



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Expert

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Hi

If it is just a life assurance policy, then it is either posted to the directors loan account, or, is a benefit, which will be subject to directors personal tax, and would go in to an expense account, somewhere in the 70xx range, possibly 7002 directors renumerations.

If it is a life insurance policy to protect the company against loss of key personel then it could be an expense, and put in the 82xx range, possibly 8204, which is just a standard insurance.

http://www.hmrc.gov.uk/manuals/bimmanual/BIM45525.htm

Gives a bit more info on the circumstance when an insurance policy may be a deductible expense.

HTH

Bill



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Senior Member

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If it's personal - Directors loan account If it's something like keyman insurance for the company - 8204 insurance. IMO  blankstare



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Sue
Assist Office Services - Bradford Bookkeeper


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OOOh Bill we posted at the same time!!



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Sue
Assist Office Services - Bradford Bookkeeper


Expert

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We nearly did it twice biggrin

I was about to say the same thing



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Veteran Member

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It's to protect the company against loss of key personnel. I'll put it to the general insurance code.

Thanks all

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Forum Moderator & Expert

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Just to confirm, it is the company and not the directors family that is the named recipient on the insurance policy isn't it?

If not you may hit problems with this as the insurance that you actually needed was Key Person Insurance (which will also cover for injury forcing prolonged absence) rather than life insurance.

At the end of the day the tax treatment is all dependant upon the final recipient of any payment on the policy.

Kind regards,

Shaun.

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Responses are not meant as a substitute for professional advice. Answers are intended as outline only and in all situations the advice of a qualified professional should be sought before acting on any response given.

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