Energy News – 21/01/2017
The week of Donald Trump’s inauguration has seen shaky energy markets, a landmark Brexit speech by Theresa M...Read More
Insurance Premium Tax (IPT) goes up from 6% TO 9.5% for any policies taken out after 31 October 2015. What does this mean for your business?
Benjamin Franklin famously offered on two certainties in life; death and taxes. He might have since added a third; tax increases.
As the Government points out, Insurance Premium Tax (IPT) is a tax on general insurance premiums. There are two rates: a standard rate 6% (which will mostly apply to insurance covers a UK SME might be expected to have) and a higher 20% rate for travel insurance, mechanical/electrical appliances insurance and some vehicle insurance.
The change was highlighted in the summer 2015 budget. The Chancellor, George Osborne, claimed that insurance has become cheaper for many and that Britain’s relatively low insurance premium tax offered an opportunity to raise state revenue.
The impact of the change has been widely debated, with Osborne claiming only about a fifth of premiums would be affected, although critics have protested that many more would suffer. How will business insurance be affected?
From November 2015 IPT, the tax you pay on your business insurance policy, is set to go up by between 3.5% and 9.5%. For SME business owners this could mean anything from a small monthly increase to a significant addition to fixed cost overheads.
Unfortunately, your options are very limited: as the tax is on business insurer providers, you cannot avoid it. However, business insurers are likely to take different approaches to the IPT increase. Some may choose to pass on the increased cost, while others may take a hit to profits to offer a better deal.
Certainly, there has never been a better time to review your insurance policy. Shopping around could save you money and effectively nullify the potential additional costs.
Excellent, efficient service
"Mark at Switch My Business has always been extremely helpful and efficient in finding us the best until the deals and handing the transition between old and new companies. Would recommend 100%."This review was posted by Karl Hopkins on the 24th of January 2017
"Aaron Gallagher provided me with a very good service. Simple switch made easy. Thank You"This review was posted by Giani on the 24th of January 2017
"It was an absolute pleasure dealing with Mark. He was courteous, very customer focused. Mark was able to answer all my questions and was very informed. I would have no hesitation recommending your company. Having been a manager in global blue chip organisation I would not hesitate in employing Mark. A definite asset to any team. Cheerful, polite and a lovely disposition."This review was posted by Caroline Dyke on the 24th of January 2017
Very helpful and friendly
"Very helpful and friendly - explained it clearly and made the process quick and easy"This review was posted by Anne O'Hara on the 24th of January 2017
"Mark was a pleasure to deal with and worked hard to provide the best rates and explain what options were available to us without making us feel under pressure."This review was posted by LORRAINE LAWRENCE on the 24th of January 2017