Profit & Loss Account Year 2
Traditional InsuranceCustomer’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) |
|
| PROPERTY CLAIM |
(5,000) |
PROPERTY CLAIM |
0 |
| Interest received |
0 |
Interest received |
3,588 |
| TOTAL PRE TAX NET EXPENSES: |
(110,000) |
TOTAL PRE TAX NET EXPENSES: |
(61,413) |
| Corporation Tax Relief |
30,800 |
Corporation Tax Relief |
17,196 |
|
|
VAT recovery* |
350 |
|
| POST TAX NET ANNUAL COSTS |
(79,200) |
POST TAX NET ANNUAL COSTS |
(44,217) |
* 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).