General Insurance Article - HMRC allow estimation of new IPT levels to ease implemention

 Firms are already working flat out to update IT systems and prepare for the change. HMRC has now confirmed that firms facing challenges providing accurate IPT returns as a result of the change in rate can discuss with HMRC the provision of estimates for initial accounting periods instead. Adjustments will be made at a later date.

  

 David Jordorson, Policy Advisor on Taxation at the ABI, said:

 “Firms had no advance warning of the increase in Insurance Premium Tax announced in the Budget, meaning preparations for the implementation date of November 1st have placed sudden pressure on IT and back-office services.

  

 “The ABI has been able to meet with HMRC and Treasury officials to explain the challenges being faced by insurers having to implement this change at relatively short notice. Allowing the use of estimated returns is a pragmatic response which should go some way to easing the transition for insurers.”