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18 November 2024
Fancy stuff
One of my clients sells high quality furniture and at the moment all sales are standard rated.
From the beginning of next month my client has done a deal with an insurance company so that the customer can make an additional payment when they buy the furniture so that the item can be insured for three years in the event of damage. This is an insurance policy and not a warranty arrangement.
- The insurance company will sell a policy with each relevant purchase plus 12% insurance premium tax eg £50 plus £6 tax = £56.
- My client will add a 100% mark-up and charge the customer a higher price ie £112 in this example.
- The £112 will be separately itemised on the sales invoice issued to the customer and described as an optional extra – insurance.
My client is not adding insurance premium tax to the...
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