HMRC says VAT is chargeable on contract-based DC advice

In a brief issued on 17 April, HMRC said businesses advising on GPPs and employers receiving their services should be aware that fees on GPP advice will attract VAT. Previously it had been common for advisers to make no charge for these services - relying instead on commission paid by the pension provider, a practice which was banned from 1 January as a result of the Retail Distribution Review. Advisers are now required to agree 'consultancy charges' with the employer instead, which may in some cases be supplemented by separate fees charged directly to the employer. HMRC said: "Bus...