Millions of people in the UK including home owners, car owners and business owners are facing an increase in their insurance costs. The standard rate of Insurance premium Tax – the tax paid each time an insurance policy is taken out in the UK, is rising from 6% to 9.5%, starting from November 1st. So, along with everyone else involved, here at The Insurance Octopus we’ll be applying the tax increase to our policies.
Although an increase was widely anticipated within the industry, a rise of more than 50% has taken many by surprise, with the British Insurance Brokers’ Association (BIBA) labelling the increase a ‘stealth tax’. For the vast majority of businesses, insurance is a compulsory purchase and therefore this is yet another increase in fixed costs during a time when economic recovery is still very much on-going across many sectors.
If you are looking to start a new policy on or after the 1st November 2015 or are invited to renew your existing policy on or after this date, you will see the new increased IPT rate of 9.5% included in your premium. Extending your policy or attempting to cancel and rewrite prior to November may not actually save you money.
The increase will have a noticeable impact on business insurance premiums so now is the time to be sure your business is getting the best possible insurance deal, talk to us today to find out how we can soften the blow of the IPT increase.
The Insurance Octopus specialises in bespoke small business insurance for SMEs working in a variety of industries across the UK. Get in touch to find out more about the tailored policies available or to request a quote.