Advisers warned on efforts to beat VAT rules after 2012

Nick Cann, chief executive officer of the Institute of Financial Planning (IFP) and Malcolm Small, policy director at the Tax Incentivised Savings Association (TISA), said the government’s tax department may view with suspicion attempts to circumvent the requirements. Some advisers already divide their income between advice and arranging for VAT purposes, while firms with employed advisers have been told an appointed representative (AR) structure could help them stay below the £73,000 threshold at which VAT becomes chargeable. Cann said there will always be a case for helping clients ...