Upcoming changes to your insurance premiums
We want to ensure you are aware of any industry or market changes that are likely to affect you and your business. That’s why we at Alcumus SafeContractor Insurance Service, powered by Towergate, have prepared the following guide outlining changes to the standard IPT (Insurance Premium Tax) rate, which will take place from 1st June 2017.
The IPT will increase by 2% from the current 10%, as announced by the Chancellor of the Exchequer, Philip Hammond, in the Autumn Statement last year.
What is IPT?
Insurance Premium Tax (IPT) is a tax on general insurance premiums which was introduced in 1994. The 2% increase is the third in a row in the last 24 months (sixth overall), with the rate shifting from 6% to 9.5% on 1st November 2015, followed by another 0.5% increase on 1st October 2016. The insurance industry anticipated the change to happen, however, insurers widely criticised the pace at which it was announced.
Who is likely to be affected?
The rate increase will be applied to most general insurance policies, so will affect all individuals, households and businesses that are not exempt from IPT.
The 12% rate will apply to all new policies and policy renewals that commence on or after the 1st June 2017.
The higher IPT rate of 20%, which applies to insurance for certain mechanical and electrical appliances, travel insurance, and some types of vehicle insurance, will remain unchanged.
What if I need to make a change to my current policy before renewal?
Alcumus SafeContractor Insurance Service, powered by Towergate, has taken the decision to apply 12% IPT to all mid-term adjustments made on or after 1st June 2017. Any adjustments made before this date will attract the current 10% IPT rate.
What about return premiums?
If a full or partial refund is made to you, the IPT refund will be at the rate you paid it.
What can I do to mitigate the effect new IPT will have on my business?
The IPT change is mandatory to all insurers in the UK, and will be added to general insurance premiums regardless of which provider you ask for a quote.
However, Alcumus SafeContractor Insurance Service has prepared a special offer to make the IPT change easier on your wallet.
As a member of SafeContractor, you will be entitled to an exclusive 15% discount* and a £30 voucher** if you take out business insurance, or email us your business insurance renewal date, before 1st July 2017.
Our special offer makes it easier for you to meet the requirement of having at least £2m Public Liability cover at all times in order to be SafeContractor accredited. It will also help you to focus on your business growth rather than the shifting charges imposed by the HMRC.
Don’t risk it!
Remember – what goes around, comes around, so don’t make false savings on your insurance.
Possible legal expenses and fees you may need to pay out if you are found liable of causing damage, injury, or loss are likely to be much higher than the difference between your current policy premium and one with the new IPT at 12%.
Speak with our dedicated insurance advisors today if you have any questions about the IPT change, or to discuss your insurance requirements.
Contact your Alcumus SafeContractor Insurance Advisor on 0344 335 3810, or 0344 335 3811 for Van Insurance.
Alternatively, you can send us an email at SafeContractor.Insurance@Towergate.co.uk
Terms and conditions
*15% off: This offer is available to NEW customers who are Alcumus SafeContractor members, employ up to 15 people and purchase a Alcumus SafeContractor Insurance Service commercial policy excluding Motor / Van. Offer until 1st July 2017. Offer only available over the phone or via enquiry form.
**£30 high street voucher: This offer is available to NEW customers who are Alcumus SafeContractor members, employ up to 15 people and purchase a Alcumus SafeContractor Insurance Service commercial policy excluding Motor / Van. One voucher per policy holder. A voucher code for Love2Shoprewards.co.uk will be issued 30-90 days after your policy inception date and you must make sure a valid email address is given on date of purchase. Not to be used in conjunction with any other offer. This offer is only available over the phone or via enquiry form and we will not award if you cancel your policy within the first month. This offer expires on 31st December 2017.
Alcumus SafeContractor Insurance Service is a trading name of Towergate Underwriting Group Limited. Registered in England No. 4043759. Registered Office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN. Towergate Underwriting Group Limited are authorised and regulated by the Financial Conduct Authority.
Post date: 09 May 2017
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