“At a time of significant uncertainty for SMEs about what the future holds post-Brexit, we are calling on the Chancellor not to increase the tax burden on businesses by increasing Insurance Premium Tax (IPT).”
This is the plea from Allianz Insurance, on behalf of small- and medium-sized enterprises and through SME and corporate partnerships director Dave Martin (pictured), ahead of the Autumn Budget happening on October 29. This comes as OnePoll’s independent research, commissioned by the insurer, shows that SME business leaders are worried about the possible rise in IPT when Chancellor Philip Hammond takes the podium.
According to Allianz, 85% of the 250 SMEs that took part in the research expressed their anxiety over the financial impact an increase in the standard rate, from the current 12%, would bring to their businesses. With higher IPT rates imposed in the likes of Finland (24%) and the Netherlands (21%), the fear isn’t unfounded.
“As a leading provider of SME insurance it’s important we understand the demands our customers face and show we are in a partnership with them,” said Martin. “IPT is clearly a significant financial burden on businesses and we want to show we’re trying to do something about it.”
The study also found that 76% of SMEs agree IPT is a tax on prudent businesses that take out insurance to protect their property and staff. In addition, nearly one in three did not know they were paying IPT.
“We hope our broker partners will flag up to SMEs the level of IPT in the overall cost of their insurance and the unwanted role of tax collector the industry plays on behalf of the government,” commented the Allianz executive.
