Insurance Premium Tax

IPT is a complex tax with a number of unusual features. One such feature is that where a broker is involved in the supply chain, the commercial arrangements may actually result in the broker bearing the cost of the IPT – even though it is the underwriter that is liable to account for it to HMRC.

IPT issues

With the significant increase in the IPT rate in November 2015, and with indications that the rate is likely to continue to increase, it is essential to ensure that IPT compliance is properly managed, to reduce the scope for errors (and the associated potential penalties) and to reduce IPT leakage.

How BDO can help

We have substantial experience in the following areas:

• IPT compliance e.g. registration and the completion and submission of IPT returns

• Assisting brokers, underwriters and policy holders to manage their IPT costs by undertaking contract reviews, identifying IPT overpayments, assisting with claims for overpaid IPT and through compliance reviews
• Resolution of disputes with HMRC
• Providing advice on questions concerning the location of risk, type of risk and applicable tax rate, in relation to both UK and overseas IPT
• Compliance with overseas insurance premium taxes (and parafiscal taxes) obligations including overseas registrations, return completion and submission.