16th March 2016
IPT Increased to 10%
More reasons to choose Centurion Warranties!
In today’s budget; the chancellor of the exchequer has announced that Insurance Premium Tax (IPT) is set to rise by 0.5% to a total of 10% on all insurance premiums.
Centurion offers a Dealer Guarantee Warranty whereby the post sales customer care is administered on your behalf by us – this is a VAT’able service and such costs can therefore be reclaimed by your business. IPT is not charged and providing your business is VAT registered – you can of course reclaim this expense.
Work out the maths; if you are supplying 20 warranties a month to your customer’s at an average cost of £100 – this equates to a pre IPT warranty figure of £2,000 per month (remember IPT is non-reclaimable) Now, add in the IPT that will be charged on this and you will quickly see you will be paying a further £200 per month - a total yearly non-reclaimable cost of £2,400. If you use Centurion as your warranty provider – you will save this expense, freeing up your budget to invest in your business – not the treasury!
If you would like to find out more – please telephone 0800 368 7420 and we will be pleased to explain our products and potential options to you.