More than eight out of 10 small businesses are concerned about the possibility of a rise in the insurance premium tax, according to research.
A survey by Allianz with 250 SME business leaders saw 85% of the SMEs were concerned about the financial impact on their businesses if there is another rise in the rate of IPT.
The standard rate of IPT has increased from 6% to 12% between November 2015 and June 2017.
“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,” said Dave Martin, Allianz’s director of SME and Corporate Partnerships.
Allianz said it hopes Philip Hammond did not raise IPT in line with other countries like Finland with and IPT of 24%, Netherlands 21% and Germany 19%.
The findings also showed that one in three small businesses did not know they are paying it, causing Allianz to describe it as a “stealth tax”.
Martin added: ““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.”
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