HMRC clarifies "30/70 split" pensions rule

HMRC says the clarification has been made as there are concerns businesses are applying the rule more generously than intended and recovering input tax to which they are not entitled. The 30/70 rule refers to the way VAT, charged by third parties such as fund managers to both employers and trustees of pension funds, is split. Since most employer-provided pension schemes are written in trust, separate to the main business of the employer, HMRC has to ensure correct attribution of services is enforced. When, for example, fund managers only supply one invoice, HMRC has generally accepted...