September 19, 2010 19:00 ET

Swinton Advises Businesses to Be Aware of Increase in Insurance Premium Tax

MANCHESTER, UNITED KINGDOM--(Marketwire - Sept. 19, 2010) - Swinton Commercial is urging all businesses to recognise the upcoming increase in Insurance Premium Tax, and be aware of how the latest effort to reduce the country's deficit will impact on their day to day business.

Currently, when a business takes out an insurance policy they have to pay a 5% levy of the overall price, but with a 1% rise due to come into effect  on the 4th January 2011, businesses will be taxed 6%, which, depending on the size of premium, could have a greater impact than a business owner  might think.  Swinton Commercial, the leading high street commercial insurance provider, is reminding businesses that are currently unconcerned with this increase to ensure they factor it into their accounting systems, as although a 1% rise may seem of little significance, if the premium is £100,000 it will mean an extra £1000 owed in tax.

Swinton Commercial  is warning business owners that the increase in Insurance Premium Tax, combined with the recession- induced reductions in insurance protection that some businesses have taken out, can subsequently lead to higher insurance bills, should they wish to increase their cover at a later date.

Chris Pearson, sales manager at Swinton Commercial, said:  "Small businesses must be aware of the increase in Insurance Premium Tax, as although a 1% increase doesn't sound like much, it could really impact on a small business if they are hit with a higher tax bill. As long as businesses are aware of the tax increases and account for them, they shouldn't have a sudden adverse effect on their business, and of course it is essential that all businesses continue to take out the correct insurance policies in order to protect their assets and interests."

About Swinton:

  • Swinton Commercial is the dedicated commercial insurance division of the Swinton Group
  • Swinton Commercial was awarded Commercial Lines Broker of the Year 2008 and was a finalist at the British Insurer Awards 2009
  • With 580 branches nationwide Swinton is the UK's largest high street insurance retailer
  • Unlike many other companies in the financial services industry, Swinton is committed to keeping its branches open for business, and part of the community
  • Swinton provides a one-stop-shop for the insurance and related needs of its clients, offering home, car, caravan, business, holiday, motorbike and even classic car insurance
  • With a dedicated team on hand at every branch to search a panel of insurers to offer quality cover at competitive rates

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