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| Caterham Member Since: 06 Nov 2008 Location: Birmingham Posts: 6308   
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can anyone tell me if car insurance has VAT included?
thank you |
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11th Oct 2011 8:39pm |
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| Martin Site Admin Member Since: 02 Apr 2007 Location: Hook Norton Posts: 6613  
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No, it is however subject to Insurance Premium Tax (IPT) at 5%.
 1988 90 Td5 NAS soft top
2015 D90 XS SW |
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11th Oct 2011 8:44pm |
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| Caterham Member Since: 06 Nov 2008 Location: Birmingham Posts: 6308
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thought that might be the case - thank you.
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11th Oct 2011 8:59pm |
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| Caterham Member Since: 06 Nov 2008 Location: Birmingham Posts: 6308
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leeds....
I'm now a little confused 
are you saying there is VAT which I can offset / claim back. but only on 95% of the total ie not the IPT Sorry if I'm being stupid. |
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12th Oct 2011 6:59am |
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| party monkey Member Since: 31 Dec 2010 Location: Oxon. Posts: 1311 
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I think Brendan was just posting a more general comment with respect to VAT. I.e if you're VAT registered then you can reclaim the VAT element on good/services where applicable.
As there's no VAT on Car insurance it doesn't apply in this instance. Jon - 110 td5 [sold]. Currently Defenderless. |
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12th Oct 2011 7:15am |
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| leeds Member Since: 28 Dec 2009 Location: West Yorkshire Posts: 8582
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Hi Caterham, sorry for confusing you, but PM is right.
A VAT registered business can offset any applicable VAT on goods/services inwards against any VAT chargeable on goods/services out going. No VAT on insurance so there is none to be offset IPT is not VAT so can not be offset. I must admit I do not know why insurance companies show IPT separately as you can not avoid paying it. So. £525 insurance premium is really a £500 premium with an additional 'voluntary' donation of £25 to the government?? Brendan |
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12th Oct 2011 8:45am |
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