Yes, professional indemnity insurance is tax deductible.
Business insurance is considered an ‘allowable expense’ – an essential cost that helps to keep your business running smoothly, which you don't pay tax on. Therefore, when calculating your taxable profits for your tax return you can deduct business expenses from your income, such as professional indemnity cover.
Alongside various other forms of business insurance, allowable expenses also include travel costs, property costs, and legal and financial costs.
Make sure that you keep a complete record of your business expenses, including a copy of your business insurance policy documents, so that you have evidence to provide HMRC if they were to conduct a check.
If you hire an accountant to look after your tax return, be sure to provide them with the details of your policy so that they can claim your professional indemnity insurance on tax as an allowable expense.
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