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Profit & Loss Account Year 1

Traditional Insurance

Customer’s P&L ACCOUNT (edited)

Synergy MicroCaptive™

Customer’s P&L ACCOUNT (edited)
  £   £
Insurance premium

(100,000)

 Insurance premium

(60,000)
Insurance premium tax (IPT)

(5,000)

 Insurance premium tax (IPT)

(3,000)
 

 

 Synergy admin fees

(2,000)
 

 

 VAT on fees*

(350)
MOTOR CLAIM

0

 MOTOR CLAIM

(10,000)
Interest received

0

 Interest received

1,750
TOTAL PRE TAX NET EXPENSES:

(105,000)

 TOTAL PRE TAX NET EXPENSES:

(73,250)
Corporation Tax Relief

31,500

 Corporation Tax Relief

21,975
 

 

 VAT recovery*

350
POST TAX NET ANNUAL COSTS

(73,500)

 POST TAX NET ANNUAL COSTS

(51,275)

* VAT is applied to the Synergy administration fees. This illustration assumes VAT @ 17.5% and that the business in question can fully recover its VAT inputs. The illustration also assumes Corporation Tax Relief @ 30% in year 1 and 28% thereafter. Interest will be receivable at 25 bps below Base (assumed 5% pa above).