The growing take-up of corporate deductible PMI products wis likely to invite greater HMRC scrutiny, Axa PPP has warned.
Elliott Hurst, health consulting director at Axa PPP, said: "We are monitoring the position and are in regular dialogue both with our tax advisers and with HMRC in this respect."
He advised employers and advisers fully satisfy themselves with the risk and legitimacy of the schemes, adding: "It is likely that, the more customers that take up such a product, the greater the scrutiny that is likely to follow from HMRC so customers do need to be careful in assuming that there is safety in numbers."
Axa PPP's initial standpoint when WPA launched its tax-efficient take on group PMI in 2010, suggested the tax position of such schemes was not clear cut.
Despite this, Aviva entered the market with a similar corporate excess product this year, and Simplyhealth is in development stages to follow suit.
Hurst said, when asked if Axa PPP would join the growing trend: "We are constantly seeking opportunities to develop new products and services but it would be inappropriate for us to comment upon specific plans until they come to fruition."
