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HMRC internal manual

Insurance Premium Tax

Maintaining the IPT Register: registration of taxable intermediaries: registration limits and procedure

As with insurers, there is no registration limit for taxable intermediaries, and they are required to be registered whatever their level of taxable income. Anyone intending to act as a taxable intermediary and charge taxable intermediaries’ fees in the course of their business must notify HMRC on Form IPT 1 (or Form IPT 2 if they are a partnership).

This notification must be made within 30 days of the earliest date after 30 April 1997 on which a person decides to charge taxable intermediaries’ fees. (A taxable intermediary liable to register for IPT will be registered from the time they begin to charge taxable intermediaries’ fees, whether or not they have notified HMRC.)

Prior to 1 April 2010, failure to notify within these time limits made an intermediary liable to a penalty equal to 5% of the relevant tax or, if it is greater, £250, as well as being liable to account for any IPT they have not accounted for.

HMRC has introduced a new penalty regime and for IPT this means that if the failure to notify happens on or after 1 April 2010, then there is a liability to a late notification penalty based on the same requirements as before this date. However, if the intermediary discovers their error and they inform HMRC of this, then HMRC will allow reductions in the penalty imposed for this disclosure. For further details refer to the Compliance Handbook at CH80000).