Chapter GIM2110

Published date15 April 2016
Record NumberGIM2110
CourtHM Revenue & Customs

Motor Insurance Company Ltd has a 31.12.07 accounting period. It enters into the following contracts for motor insurance:

Contract No. Date entered into Premium
1 1/1/07 300
2 27/2/07 450
3 1/6/07 600
4 5/9/07 500
Total premiums 1,850

The UPP would be calculated as follows:

Contract No. 24ths Method UPP 365ths Method
1 1/24 x 300 13 0/365 x 300
2 3/24 x 450 56 57/365 x 450 70
3 11/24 x 600 275 151/365 x 600 248
4 17/24 x 500 354 247/365 x 500 338
Total UPP 698 656

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