Is Private Health Insurance Tax-Deductible for the Self-Employed?

Do not assume that personal private medical insurance premiums are an allowable business expense simply because you are self-employed. Tax treatment depends on the facts, including the business structure and why the cost was incurred. A sole trader’s personal policy is not automatically treated like insurance provided by a company to an employee.

Check before including a premium in your accounts

Review HMRC’s guidance on business deductions and medical insurance, and ask an accountant or HMRC if your circumstances are unclear. Keep the policy, invoice and evidence of who is insured. If you operate through a limited company, do not assume that rules for a sole trader apply to the company or its director.

Separate insurance from healthcare costs

A premium, a treatment bill and an employer-provided benefit can have different tax treatment. Make sure you are asking about the specific type of payment.

Can a director claim the premium?

The answer may depend on how the company provides and reports the benefit. Get advice before filing.

See our guide to health insurance for company directors.

Sources checked 18 October 2026: HMRC: Own health policies and insurance funds · GOV.UK: Medical treatment and insurance expenses and benefits