Advisers targeted by HMRC in VAT clampdown

UHY Hacker Young Group claimed HMRC has become increasingly aggressive in challenging the VAT arrangements of small businesses, including advisers, targeting them to "challenge long-accepted VAT arrangements" or impose "unrealistic burdens" to claim back VAT. The group pointed to figures which suggested HMRC took a record £3.9bn in extra VAT from compliance investigations into small businesses in the year leading up to March - up 10% on the £3.6bn brought in the previous year. HMRC rules state advice fees and commission are always taxable, while remuneration for intermediary service m...