Being the owner of a company means so much more than just having to sit around and have orders coming in and out of your cabin. The biggest responsibility apart from the work you do here is the fact that you have to take good care of your employees. After all they are all dependent on you for earning their livelihood. The more you put in for their benefit, the more they will love and respect you. In addition to all those things, it is mandatory that you set aside a few regulations that deal with the welfare of your employees. One of such measures that are taken up includes P11D benefit in kind and life insurance.
In simpler terms you can understand it as a sort of group insurance. Under this plan the employer gets the entire staff that he or she has employed under one scheme. It deems all the members of it an equal recipient of it. In the case of any eventuality that happen they will all be liable to receive equal benefits. It also lends some tax benefit to the employer. At the end of every financial year, they have to show it in their returns, the amount that they spent that year taking care of the directors and the employees. If you are an employee, you do not have to fill out any such form. It is already accounted for by your boss in his return.
A life insurance plan:
The rules that govern the ruling of this provision are quite similar to that of a life insurance but they are not exactly the same. As long as the employer is paying the monthly amount directly to the service provider the plan continues to act as a life insurance cover. But as opposed to the provisions of a life insurance plan, one does not stand to benefit from it anywhere in filing their returns. Until and unless you have taken out a policy in your own name, P11D benefit in kind and life insurance are completely different things. It is the duty of every employer (mandatory for those registered) to take care about the well being of their workers. If you are looking for a tax saving approach then try to get in touch with an efficient attorney or CA, they will be able to help you better with it.