Energy News 24/03/2017
Check out our weekly round up of the stories that have been making the headlines in the energy world over the ...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.
Helpful, friendly and we saved lots of money!
"Jessica Purnell was helpful and friendly, she made the whole process easy and simple AND we saved lots of money thanks Jess"This review was posted by Melanie Baker on the 23rd of March 2017
Quick & Easy
"Kabibi was very helpful and the whole process was very efficient. The one small reservation I had was that I was phoned up by Kabibi almost immediately having received my online quote - which wasn't enough time for me to finish reading the quotes! Fortunately she was able to assist me in a greater savings on both Gas & Electricity, and so as long as the switchover is seamless I will remain very happy with the service."This review was posted by Amanda Brown on the 21st of March 2017
"I am very happy with Aaron's service. He has helped me save over £1000 a year on my businesses energy costs."This review was posted by R Thomas on the 21st of March 2017
So helpful and quick
"Prompt advice and help from Ashley. I hadn't realised changing energy suppliers could be so easy and quick. Thanks so much. Will definitely recommend!"This review was posted by charlotte on the 21st of March 2017
Easy and stress free
"I hate this time but f year when it's time to renew my electricity. I decided to use a comparison site this time round and never looked back. My advisor (Aaron Gallagher) was polite and knowledgable and efficiently changed my business."This review was posted by Kevin on the 21st of March 2017