Some 80% of small adviser firms are not VAT registered according to a report released today.
The Adviser Snapshot, released by Adviser Consulting, also indicated that 70% of large firms are not VAT registered.
Separately one in three firms have some concerns about the application of the VAT rules as well as their own VAT status.
The report questioned 79 adviser firms' about their charging practices following the introduction of the Retail Distribution Review.
Not charging VAT means that all advice is being given with the sale of a product as the end result.
The report also found that half of respondents do not explicitly detail their charges on their websites, and a significant number (approximately 10%) do not have a website.
Finally, the survey also asked how firms treated protection business where this generates commission. Approximately 35% of firms take full commission on protection business even where they are also charging for the relevant advice, declaring this to the client.
Putting the tech into protection
Square Mile’s series of informal interviews
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Launching later in 2019
£80bn funds under calculation