INSURANCE PREMIUM TAX

by | Nov 5, 2017 | Tax

Last month we were discussing staff retention and many business owners think that the provision of benefits, such as medical insurance, helps.

Most would agree that there’s a real benefit in by-passing lengthy NHS waiting times and receiving much quicker diagnoses and treatments.

And the business owner may appreciate valued team members returning to work sooner, let alone the increased flexibility around appointment times.

So it could well be a win-win!

However, the 2015 Summer Budget announced that Insurance Premium Tax (IPT) would increase from 6% to 9.5% on 1 November 2015.

And whilst rates in the UK will still remain lower than many of our European counterparts, the increase in IPT could raise financial challenges and perhaps highlight the value of using an independent intermediary to help contain cost increases.