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HMRC internal manual

Insurance Premium Tax

From
HM Revenue & Customs
Updated
, see all updates

Accounting for Insurance Premium Tax: the cash receipt accounting method: payments in instalments

Each receipt, where payments are made in instalments, constitutes a tax point.

Example 3

  • ABC Insurance sell a policy. Payment terms 10 monthly instalments of £50.
  • Insurer receives premium as separate instalments of £50 at 1 July, 1 August, 1 September, etc.
  • Tax Point(s): 10 tax points, in respect of £50 - 1 July, 1 August, 1 September, etc.