Entrepreneurs and business owners are being "kept awake at night" by the latest tax changes.

As businesses and consumers alike face a rise in Insurance Premium Tax (IPT) today, the Federation of Small Businesses (FSB) is calling on the next government to commit to no further increases over the new Parliament.

IPT is a tax set by HMRC on general insurance premiums, including commercial and landlord insurance.

Responding to today's rise in IPT to 12 per cent from the previous rate of 10 per cent FSB National Chairman Mike Cherry said: "This IPT hike will hurt small firms trying to do the right thing.

"The doubling of IPT over the past five years is hitting our members, directly increasing insurance costs at a time when the costs of doing business are at their highest since summer 2013.

"Having absorbed a recent rise in the National Living Wage and a business rates revaluation, there will no doubt be many small firms thinking twice about taking insurance policies as a result of this tax grab.

"If insurance premiums continue to increase, small business take-up of insurance will dip, and it will be those most at risk that will be affected.

"This increase affects all policies, including vital lifelines such as income protection insurance, vehicle insurance and flood insurance.

"Unlike VAT, small firms cannot claim back the cost of IPT.

"The next Government should promise no further hikes in IPT for the new Parliament.

"This poorly thought through tax rise discourages good behaviour and is yet another hidden cost keeping our entrepreneurs awake at night."

What do you think about the IPT rise? Email mark@moosemarketingandpr.co.uk 

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