John has claimed income protection from his insurance while he was unable to work due to hip surgery. The monthly payments were paid out of his income protection policy called "Disability Benefit". Questions are :
1. Are the monthly payments/income from John’s disability insurance taxable, even though they are called "Disability Benefit" and John paid the premiums from his personal account without claiming them as a tax deduction?
2.Would the tax treatment change if John had claimed the insurance premiums as a personal tax deduction?
3.What would the consequences be if the premiums for John’s disability insurance were paid by his company, where he is a director?
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169 views
4 replies