The management of the Whitechurch Network is urging advisers to push their networks to clarify with HM Customs and Excise immediately on whether they will have to pay Vat on member charges.
Whitechurch Network managing director Ian McIver wants IFAs to make their networks aware of the potential threat of Vat on charges before their organisation is contacted by Customs.
McIver believes once action is taken against a firm, advisers could end up paying Vat while the management put an individual case to Customs.
Advisers believe any ruling forcing IFA networks to pay Vat on member charges will alter a network model that has been operating for years McIver thinks a ruling forcing appointed reps to pay Vat on a fee taken out of their commission will create a skewed market. He considers it unfair that directly authorised firms would not be paying Vat on commission or the services they get from the regulator.