IPT07735 - Accounting for Insurance Premium Tax: the cash receipt accounting method: payments in instalments

Each receipt, where payments are made in instalments, constitutes a tax point.

Example 3

• ABC Insurance sell a policy. Payment terms 10 monthly instalments of £50.
• Insurer receives premium as separate instalments of £50 at 1 July, 1 August, 1 September, etc.
• Tax Point(s): 10 tax points, in respect of £50 - 1 July, 1 August, 1 September, etc.