Under the current small-taxpayer (KATA) rules, a KATA-taxed sole trader generally cannot invoice a company (with the exception of taxi passenger transport), so the non-employment circle is typically a sole trader or business-association partner under the flat-rate scheme or another tax regime, or a contractor under a mandate agreement – it is worth confirming the classification with your accountant. This article is deliberately cautious: in edge cases, confident sweeping statements are the worst adviser, so there will be more questions here than assertions.
Why is this an edge case at all?
The benefit logic is built on employment: a company protects its own employees. As soon as the circle widens – with an invoicing partner, a contractor, or an owner who does not work under an employment contract – two separate questions open up: the insurance side (can that person join the group under the given product) and the tax side (how the premium paid for them is classified). For participants outside employment, the tax assessment of the company-paid premium can, under the current rules, differ from case to case – here, instead of a categorical answer, it is worth asking your accountant for an individual position, before the quotes are even requested. So the question is not whether it is “allowed”, but what the consequences of the given form are – and that can only be answered responsibly with the specific legal relationships in view.
When the company itself is taxed under a special regime
It also matters which tax regime the employer operates under. For companies that chose the small-business tax or another special regime, the public charges on benefits typically follow that regime's own logic. This can deviate from the general picture – in a more favourable direction as well as a less favourable one – which is why it is worth fixing the classification with your accountant before the structure is finalised. The base picture – for a team in employment – is drawn in the base article on taxation.
Small taxpayers and flat-rate sole traders in the circle
A frequent situation: part of the team is employed, another part works as invoicing partners, and the company would like to give everyone the same protection. On the insurance side, several products typically leave room in how the insured circle is defined – on the tax side, however, the partner relationship can produce a different picture, and the benefit may also affect the small taxpayer's or flat-rate trader's own tax position. Sometimes the final solution is mixed: the employee circle receives group cover, while the partner circle provides for itself in another form – that too is a perfectly sound outcome. We wrote about the typical questions of family businesses in the family SME article; quick answers to the most common questions are on the FAQ page.
The right order for edge cases
1. Define the circle by legal relationship: who is an employee, who a partner, who an owner. 2. Sit down with your accountant – we provide the question list ready-made in the checklist article. 3. Only then request offers: that way the structure is built for the real situation from the first attempt and does not need reshaping afterwards. As the broker I bring the insurance side; the tax side belongs to your accountant – together the two give a well-founded answer.
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