HMRC to hit pet owners with tax bill that millions don't know about

Britons now pay so many taxes even HMRC can’t keep up - and pets pay DOUBLE. Taxpayers are under siege like never before as allowances are cut or frozen and even pets across the country cannot escape the HMRC onslaught, according to experts.

Joe Neal, tax manager at Blick Rothenberg. “HMRC produced record takings for income tax, National Insurance (NI), VAT and inheritance tax last year.” Car, home, pet insurance and private medical insurance premiums are skyrocketing with insurance premium tax (IPT) sitting at 12 per cent.

IPT rises to 20 per cent on travel insurance, electrical appliance and new cars bought from dealerships with insurance part of the package. IPT is up six per cent on a decade ago - a brutal blow for UK households amid the ongoing Cost of Living crisis.

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An incredible 84 per cent of households pay IPT, yet two thirds of us know next to nothing about it. HMRC tax receipts reveal that the Insurance Premium Tax (IPT) income is up 10% on the last year. Between April 2023 and January 2024, IPT raised £6.5 billion for the Treasury compared to £5.9 billion through the same period the previous year.

OAC head of insurance consulting Cara Spinks says: “While consumers are set to see another squeeze on their household finances, the Treasury looks set to haul in yet another bumper year of IPT receipts. Collections broke £6 billion in 2021/22, £7 billion in 2022/23 and could now surpass £8 billion through this financial year.”

“Alongside rising costs, the health insurance sector has also experienced growing demand for its products. Increased pressure on the NHS has seen more employers and individuals take out private medical insurance and health cash plans to support continued health and speed up treatment.

“With the health of the nation and workforce at the heart of the government’s promise to drive up economic growth, the reduction or removal of IPT for health insurance products such as PMI and health cash plans could support this aim by reducing economic inactivity due to chronic illness while also easing the pressure on household finances.”