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Profit & Loss Account Year 3

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)
PUBLIC LIABILITY CLAIM

0

 PUBLIC LIABILITY CLAIM

(25,000)
Interest received

0

 Interest received

5,142
TOTAL PRE TAX NET EXPENSES:

(105,000)

 TOTAL PRE TAX NET EXPENSES:

(84,858)
Corporation Tax Relief

29,400

 Corporation Tax Relief

23,760
 

 

 VAT recovery*

350
POST TAX NET ANNUAL COSTS

(75,600)

 POST TAX NET ANNUAL COSTS

(61,098)

* 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).