VAT Update: Redefining ARs as the principal

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Since the story broke earlier this week of a potential change in the VAT treatment of networks and Appointed Representatives, there has been a lot of confusion as to what the issues really are, who the VAT is being imposed on, and why.

Initial discussion between networks and individuals who have not seen the ruling made by HM Customs & Excise (C&E) on Whitechurch Network have led some industry officials and networks to believe the matter is simply about when VAT should be added to consumer’s bill for financial advice. In reality, this potential change in VAT treatment is actually about the changing status and function of networks and C&E’s attempt to justify their redefinition of Appointed Representatives (ARs). Industry sources are concerned the ruling – which suggests all network members will have to pay VAT on th...

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