Insurance Premium Tax – the continued rise.
On 1st June, the standard rate of Insurance Premium Tax (IPT) rose for the third time in 19 months to its current level of 12%. Having doubled over the course of less than 2 years, this is a government levy that adds significant cost to households and businesses.
Originally introduced in 1994, IPT was intended to raise tax from an area of industry exempt from VAT under EU legislation. Although the rate had not varied much until recently, IPT now appears to be firmly in the cross hairs as a valuable source of income to HM Revenue & Customs.
In the current economic climate further increases cannot be ruled out; the rate may even climb to match that of VAT. IPT is not a tax that only affects specialist covers – it applies to compulsory insurances like Employers Liability & Motor along with other products which are essential for the protection of policyholders.
While the team at BQI cannot prevent you from paying an increased rate of IPT, we do have markets and products that ensure we are obtaining the best rates for our customers.
With many factors currently contributing to increased costs of doing business, you can at least trust us to take care of the insurances for you.