Chancellor puts on 9.5% On insurance policies. Absorb or pass on?

[GTS]

I had an email from my insurance company the other day about the fact that they were warning current customers that their insurance policies, no matter what they are are going up, in this case an extra 9.5%!!!!!!!!!

I haven't begun to add up the overall costs on EVERYTHING which has an insurance policy. So he's making more and more out of business. Taking more out of the back door and out of my bottom line.

What has everyone else done to cope with this, absorb or pass it on?

[Steve Bullman]

its not 9.5% on the cost of the whole policy

[eggsarascal]

I had an email from my insurance company the other day about the fact that they were warning current customers that their insurance policies, no matter what they are are going up, in this case an extra 9.5%!!!!!!!!!

I haven't begun to add up the overall costs on EVERYTHING which has an insurance policy. So he's making more and more out of business. Taking more out of the back door and out of my bottom line.

What has everyone else done to cope with this, absorb or pass it on?

 

Are you sure this is correct?

 

How I read it was, it's going up 3.5%, from 6% to 9.5%.

[Steve Bullman]

Also its only a 3.5% rise, we were already paying 6%. In answer to your other question, of course you pass it on, this is plain business sense.

[GTS]

Hi chaps, Arborisk sent out this email saying, hang on

[GTS]

We are writing to provide you with an update on the forthcoming change to Insurance

Premium Tax (IPT).

 

IPT was introduced by the UK Government in 1994 at a rate of 2.5%. Subsequent

increases in the rate were made in 1997 to 4%, 1999 to 5% and in 2011 to 6%. In the

July 2015 budget the Chancellor announced that IPT will increase to 9.5% with effect

from 1 November 2015.

 

All policies effective from 1 November 2015 onwards (new and renewals) will

therefore be subject to 9.5% IPT unless otherwise stated.

Mid- term adjustments which result in an additional premium that are effective from

the 1st March 2016 onwards will include IPT at 9.5% (irrespective of whether the

mid-term adjustment relates to the period when the initial premium was charged at 6%

or 9.5%).

All mid-term adjustments which result in a return premium and relate to the period

when the initial premium was charged at 6% IPT will include IPT at 6%.

 

There you go, what do you recon?

[Steve Bullman]

We are writing to provide you with an update on the forthcoming change to Insurance

Premium Tax (IPT).

 

IPT was introduced by the UK Government in 1994 at a rate of 2.5%. Subsequent

increases in the rate were made in 1997 to 4%, 1999 to 5% and in 2011 to 6%. In the

July 2015 budget the Chancellor announced that IPT will increase to 9.5% with effect

from 1 November 2015.

 

All policies effective from 1 November 2015 onwards (new and renewals) will

therefore be subject to 9.5% IPT unless otherwise stated.

Mid- term adjustments which result in an additional premium that are effective from

the 1st March 2016 onwards will include IPT at 9.5% (irrespective of whether the

mid-term adjustment relates to the period when the initial premium was charged at 6%

or 9.5%).

All mid-term adjustments which result in a return premium and relate to the period

when the initial premium was charged at 6% IPT will include IPT at 6%.

 

There you go, what do you recon?

 

3.5% increase as it says

[eggsarascal]

We are writing to provide you with an update on the forthcoming change to Insurance

Premium Tax (IPT).

 

IPT was introduced by the UK Government in 1994 at a rate of 2.5%. Subsequent

increases in the rate were made in 1997 to 4%, 1999 to 5% and in 2011 to 6%. In the

July 2015 budget the Chancellor announced that IPT will increase to 9.5% with effect

from 1 November 2015.

 

All policies effective from 1 November 2015 onwards (new and renewals) will

therefore be subject to 9.5% IPT unless otherwise stated.

Mid- term adjustments which result in an additional premium that are effective from

the 1st March 2016 onwards will include IPT at 9.5% (irrespective of whether the

mid-term adjustment relates to the period when the initial premium was charged at 6%

or 9.5%).

All mid-term adjustments which result in a return premium and relate to the period

when the initial premium was charged at 6% IPT will include IPT at 6%.

 

There you go, what do you recon?

 

I recon, after reading that, that it's going up 3.5%, from 6% to 9.5%.

[GTS]

thanks Steve

[Mull]

A rise of over 50% is fairly significant is it not? Well, if you pass it on, maybe not!