Remember when HM Revenue & Customs (HMRC) launched a consultation into how the Insurance Premium Tax (IPT) operates last year?
In its call for evidence in 2019, the UK’s taxman noted: “There is currently no publically accessible way for brokers or consumers to verify whether an insurer is registered to pay IPT. This prevents stakeholders from easily identifying insurers that are failing to register and pay IPT. It also potentially enables the use of non-compliant insurers and allows for the undercutting of compliant companies.”
Now, a report by the Mail on Sunday suggests that the UK Budget 2020 could be the new Chancellor of the Exchequer’s platform to address loopholes in the system and potentially unveil a crackdown. This will be the first Budget of Rishi Sunak, the former Chief Secretary to the Treasury who replaced Sajid Javid as Chancellor on February 13.
Javid, who did not bring forward the Budget last November ahead of the General Election and Brexit, resigned last week. In his letter, the MP told Prime Minister Boris Johnson: “While I am grateful for your continued trust and offer to continue in this role, I regret that I could not accept the conditions attached to the reappointment.”
The conditions included having to fire Javid’s advisers.
The last Budget Statement was delivered on October 29, 2018 by then Chancellor Philip Hammond, who for a good while faced pressure from the insurance industry to end the IPT hikes. Meanwhile it’s unclear whether the next Budget, which is slated for March 11, will push through as scheduled.
