Customs imposes VAT on IFA network membership

clock

Appointed Representatives of IFA networks may soon be required to pay Value Added Tax on services delivered by their network principles, following a Customs & Excise ruling which suggests network firms are not exempt from payment.

Correspondence between Whitechurch Network and HM Customs & Excise is still at an early stage, however, an interpretation of existing VAT rules by the agency appears to suggest "the Vatman" believes services companies and networks should be treated equally, and could therefore require all network members pay 17.5% VAT for any services the network delivers. Ian McIver, managing director at the Bristol-based network, says a ruling made by HMC&E - now in the hands of legal experts - seems to contradict existing interpretation of VAT rules. "Customs and Excise have argued they can loosely...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Feel Good Friday: Brooks Macdonald gives sports wellbeing advice

Feel Good Friday: Brooks Macdonald gives sports wellbeing advice

Wealth manager has partnered with charity Sporting Wellness

Professional Adviser
clock 03 May 2024 • 1 min read
Adviser guide aims to 'demystify' Consumer Duty annual reporting

Adviser guide aims to 'demystify' Consumer Duty annual reporting

Firms to produce first annual Consumer Duty board report

Sahar Nazir
clock 02 May 2024 • 1 min read
Behavioural coaching a 'tough sell' among prospective clients

Behavioural coaching a 'tough sell' among prospective clients

‘Clients overlook major sources of value from advisers’

Isabel Baxter
clock 02 May 2024 • 1 min read