IPT – returns, payments and penalties

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • IPT – returns, payments and penalties
  • Completing an IPT return
  • IPT return errors
  • Adjustments / errors
  • How to remit IPT to HMRC
  • IPT refunds
  • Penalties and interest
  • Interest
  • Security
  • Reviews and appeals

This guidance note provides an overview on how to complete and submit the IPT return and payment, and covers the penalties that can be imposed by HMRC on a business who fails to handle its IPT affairs correctly. This note should be read in conjunction with the IPT – accounting requirements. guidance note.

FA 1994, ss 48–74, Sch 6A, Sch 7 and Sch 7A; Insurance Premium Tax Regulations 1994, SI 1994/1774; HMRC Notice IPT1 ; IPT09100; 2006/112/EC , Article 401
Completing an IPT return

Businesses that are registered for IPT will receive an IPT return every 3 months. The business will need to complete the return by the due date and submit this to HMRC together with any payment due. Businesses must ensure that their books and records enable them to correctly identify all taxable premiums that have been received where the tax point falls within this IPT return period. The business should also include any IPT due fees received from taxable intermediaries that have been received during that IPT return period.

The period that is covered by the return is called the ‘tax period’ or ‘accounting period’. For IPT purposes the tax period will end on a fixed date throughout the IPT tax year and therefore the first return received by the business may not be for 3 months. Businesses can also submit a request to HMRC to have accounting periods that could match their financial year end, align to any non-standard accounting periods, etc which HMRC will normally agree to unless they would prefer that the business has a different accounting period.

Businesses will need to fully complete the form insuring that they include the IPT due at the standard and higher rate in the relevant boxes on the return for all premiums with a tax point date during that return period.

The form must reach

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