Finally, some clarity in the VAT confusion

Rules surrounding VAT and adviser charging have been causing plenty of headaches for advisers recently. Under existing HMRC rules, professional advice where no product application is made is subject to VAT, while financial services ‘intermediation’ is exempt. But a lack of clarity over what constitutes advice and intermediation – and what this means for ongoing charges - has been a source of confusion for advisers. So what is HMRC likely to say? Intention One of the key clarifications in the guidance is expected to include the word ‘intention’. HMRC is likely to state that, whe...