In less than a month, the Chancellor’s planned increase in Insurance Premium Tax (IPT) will take effect. From 1st November, the rate rises from 6% to 9.5% and is likely to make medical insurance and cash plans less attractive to customers, driving many back to the already cash-strapped NHS.
I, along with most, struggle to see the logic in this move and there’s no doubt it’s a troubling time for the insurance industry.
If you’re worried about the costs to your business, I have three ideas to help ease the pain:
- Consider a 6 week wait – this is considerably cheaper than a plan with immediate access to treatment and is likely to make up for the tax hike in terms of cost
- If that’s still out of the question, a Cash Plan can give your staff access to subsidised treatments and will encourage a fitter workforce
- Above all, remind yourselves and your staff of the impact this move will have on the NHS. Waiting lists are already at an all time high in areas and more people giving up on private cover due to costs will only compound this problem. For you as a business, and your employees as individuals, the additional tax is a headache – but an increased cost which should be judged on the simple question: Can we afford NOT to do this?
If you’re worried about the impact of IPT come November, please feel free to give me a call and we can chat through some options.
My best advice is not to do anything rash – remember stopping a policy can put you in a much worse position should you decide to take one up again, once more.