When you joined the Salary Protection, your premiums were set up to be paid either through your salary (i.e. Deduction at Source) or by direct debit from your bank account. Both options keep your cover in place, but they work slightly differently and each have their own advantages.

Here is a simple reminder of how each method works:

1. Paying by Deduction at Source (from your salary)

With Deduction at Source, your premiums come straight out of your payslip.

a) Automatic tax relief at source

Your premium may appear as two lines on your payslip, depending on your Scheme/Plan Benefits:

• One line for the Disability Benefit portion, which automatically receives income tax relief at your highest rate
• One line for the remaining benefits, which do not receive tax relief. Please refer to the Summary Booklet for your Scheme/Plan via the link below, for more details on your benefits.

Because tax relief is given under the Net Pay Arrangement, you receive the tax relief immediately in your pay and do not need to make a separate claim to Revenue!

It’s important to note that Tax Relief only applies to the Disability Benefit portion of your premium.

b) Premiums move with your salary

When you pay through salary, your premiums increase or decrease in line with your salary changes. This means that your cover under the Scheme is consistently based on your actual salary and ensures deductions are correct.

c) Simple and “hands off”

Once everything was originally set up, payroll handle the deductions. You don’t have to remember to send statements to Revenue for tax relief or to arrange a monthly transfer yourself.

2. Paying by Direct Debit

With direct debit, your premium is taken from your bank account each month.

a) Keep your salary information up to date

Your premium is based on the last gross salary you informed Cornmarket of, or the last salary we estimated for you at a Scheme review.

The salary covered by the Scheme is the lower of:

• The salary on which your premiums are based, or
• Your actual salary at the end of the deferred period (as confirmed by your employer)

It’s important to let Cornmarket know whenever your salary changes, so that we can adjust your premiums accordingly and ensure the correct level of cover is in place.

b) You claim tax relief yourself

If you pay by direct debit, you don’t receive tax relief automatically at source.

Instead, you send a Tax Certificate Premium Statement from Cornmarket to Revenue to claim income tax relief on the Disability Benefit portion of your premium. This Tax Certificate can be requested from Cornmarket at the beginning of each year e.g. a Tax Certificate for 2026 Direct Debit premiums can be requested from January 2027 onwards.

What are the differences between the two payment methods? The main differences are:

• Deduction at Source (through salary)

o    Automatic tax relief is granted at source on the Disability Benefit portion of your premium

o   Allows premiums to move in line with your salary through payroll

o   Removes the need to claim tax relief directly from Revenue!

• Direct Debit

o   Helps if payroll deduction is not possible

o   Requires you to claim tax relief from Revenue using a Tax Certificate Premium Statement

o   Relies on you telling Cornmarket when your salary changes, so your cover and premium stay in line with your income

Whichever method you use, keeping your premiums up to date means your invaluable Salary Protection benefits are there when you need them most.