As you may be aware Chancellor, Phillip Hammond, announced in March that the Government would be applying a further increase to Insurance Premium Tax (IPT). The increase will be effective from 1st June 2017, increasing the current rate of 10% to 12%.
Over the years IPT has steadily increased starting out at 4% in 1999, moving up to 5% in January 2011 and then increasing to 6% in 2015. However, in recent years, we have seen large IPT increases. In September 2016 IPT increased to 9.5% then by a further 0.5% in October 2016. Now we are set for another hike in a short space of time from 10% to 12% in June 2017. As time rolls on we expect this to continue until IPT is in line with VAT.
The answer is simple, it means nothing, you have no need to panic. This year Caunce O’Hara will once again absorb the additional cost and you will NOT see an increase in your insurance premium related to IPT. We understand that running your own business is difficult and every penny counts especially when you’re a freelancer or contractor. That’s why over the years Caunce O’Hara have absorbed approximately half a million pounds in IPT increases since the initial rate of 6% and we will continue to do so.
You can be assured that this additional cost to Caunce O’Hara will not impact on the standard of service we provide to our customers and we will continue to be here when you need us. If you want to take a look at the great feedback we have received from our customers about their experience of our service you can find their comments here. We are very proud of our 98% satisfaction rating and are delighted to say we have a Net Promotor Score of 81% since the start of 2017 with 0% of our customers being dissatisfied with the service our team provides.
We will always endeavour to keep you updated on any further increases and any other issues affecting your insurance policies. But you can also stay up to date by following us on Twitter, finding us on LinkedIn or liking us on Facebook.
At Caunce O’Hara we will continue to put our customers first no matter how large or small and help to keep your business safe and thriving.
Caunce O’Hara is a business insurance broker offering protection to freelancers, contractors and small businesses. Insurance is vital to all businesses, especially to start-ups. If you would like a competitive online quotation for your business insurance, please click the green button, it only take a few minutes.