VAT guidelines to define 'pure' advice

Speaking at a Tax Incentivised Savings Association (TISA) briefing in London yesterday, HMRC's David Coppins said there was still confusion about which pieces of work are VATable. Current guidelines state advice-only business is chargeable while arranging-only work is exempt. However, where both advice and arranging occur, the VAT liability will likely be decided on which element dominated the work. Coppins said HMRC would look to provide a clear explanation of how that would be determined, and ensure it is applied consistently. "Advice has to be taken on its merits," he said. "...