UK Fact-File Part 7:
Business Owner Welfare and Lifestyle

7.4 UK Individual Business Healthcare

Residents of the UK (and indeed the European Union, through the UK’s EU membership) have the right to free health care at the point of access through the National Health Service (NHS).

However, for those in business, especially a sole trader or small business, cover in the event of illness or injury is of critical importance, especially if the incapacity of the proprietor of a business affects the ability to generate further income if there is nobody else able to take over their role (eg sportsperson, dentist, architect).

There are a number of companies in the UK who provide health insurance cover (eg BUPA, AXA, Standard Life). The typical benefits normally cover hospitalisation, surgery, consultancy fees and loss of income.

Sole traders can set up a simple health care scheme (and offset the costs against profits/tax). For SMEs, business health care packages are available. These schemes can also be set up to benefit employees and can be restricted to key directors and executives. There are tax advantages in a scheme being set up by an SME.

Private health care policies in the UK are expensive and cover is often restricted. Companies who provide health care policies often make decisions on the extent of cover they will provide on an individual basis, with varying costs. It is advisable to seek expert advice on the portability of any health care policy taken out in a country other than the UK, and vice-versa for working in other countries under the cover of a policy taken out in the UK.