pay Insurance Premium Tax

IntroductionThis guide offers a reminder of Insurance Premium Tax payment deadlines and explains all of the available payment options.HM Revenue & Customs (HMRC) recommends that you make all of your Insurance Premium Tax payments electronically.

Paying electronically:is safe and secure .gives you better control over your money .provides certainty about when your payment will reach HMRC .avoids postal delays .may lower your bank charges .lets you pay at a time convenient to you if you use Internet or telephone banking .gives you seven additional days in which to make your payment if you pay by Direct Debit .

You are responsible for calculating how much Insurance Premium Tax is owed and for paying the tax due on time.You must register for Insurance Premium Tax. Once you've registered, HM Revenue & Customs (HMRC) will send you a return, usually every three months, for you to complete and send back with payment for any tax due.For overseas insurers who use an agent to deal with their Insurance Premium Tax affairs, the agent must ensure that the return is completed and sent back to HMRC on time. insurers who use an agent to deal with their Insurance Premium Tax affairs, the agent must ensure that the return is completed and sent back to HMRC on time.

If the completed return or payment is not received by HMRC by the due date shown on your Insurance Premium Tax return, you and/or your agent in the case of overseas insurers may incur a penalty. This will be either 5 per cent of the tax due or £250, whichever is the greater, and a penalty of £20 for every day after the due date that the return and full payment remains due.