Tax Tips: Director health check: the “company-paid” expense that can save on your Ltd tax bill

TaxTips for UK Ltd Companies

If you’re a director of a UK Ltd, you’ll often pay your annual health check with money that’s already been taxed usually from salary under PAYE regime or Dividends via your Self Assessment Tax Return.

But there’s a cleaner approach: have the company pay for it, following HMRC’s rules around annual screening and check-ups.

Why it’s worth it

Because it helps you avoid the usual chain: profit → corporation tax → dividend tax → then you pay the check.

Whereas, if it’s set up correctly, the company can cover the cost in a tidy, defensible way.

The simple rule that matters

In practice, HMRC allows an exemption for:

• 1 health screening assessment per year

• 1 medical check-up per year

The key is not to turn a “check” into a package that includes treatment/therapy, because that’s where you increase the risk of all of it than, becoming taxable.

Want more tax-saving and tax planning ideas for Ltd directors?

Contact TaxHub and we’ll show you practical, compliant ways to pay less tax and keep more of your profits.