Chapter GIM2110
Published date | 15 April 2016 |
Record Number | GIM2110 |
Court | HM 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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