View more on these topics

Excise in summit talks to decide network VAT

HM Customs and Excise is holding crisis talks with the Treasury, the FSA and senior financial industry figures to hammer out its policy on the Vat treatment of network member charges.

The summit meeting follows a move from Customs to force one small network to pay Vat on its member charges.

Following an appeal, the network directors have been assured by Customs and Excise that their business has not been singled out for scrutiny and the rest of the industry should expect similar investigation in the near future.

Despite fears that the ruling would be applied up to three years retrospectively, the network has been told it will be applied contemporaneously.

Support services providers such as Bankhall look set to escape the ruling but IFA, mortgage and general insurance networks could all be hit with tougher Vat requirements.

Tax experts believe that the few product providers which still have direct salesforces, such as Legal & General, Zurich Advice Network and St James&#39s Place, could also be subject to scrutiny.

Industry trade bodies believe that any attempt to backdate Vat or impose fines could have dire consequences for the sector, costing networks millions. They fear that individual network members may end up footing the Vat bill, which, in addition to regulation and PI insurance costs, could see many leave the industry.

A Customs and Excise spokeswoman says: “Customs at present are liaising with interested stakeholders and discussions and meetings will be held over the next few months. Customs are bound by taxpayer confidentiality and are unable to discuss matters regarding any specific taxpayers and their tax affairs.”

Syndaxi Financial Planning director Robert Reid says: “If the Treasury feels that it has lost any revenue it will be keen to bring this issue to an early conclusion. This needs to be part of a strategy to look at the whole issue of Vat for IFAs.”


B&B to focus on core lending business

Bradford & Bingley announced today as part of its strategic review that it is to focus on its specialist lending business Mortgage Express and on its own-brand residential, commercial and housing association lending. Group chief executive Steven Crawshaw says: “Bradford & Bingley will simplify, clarify and continue to build upon its core propositions of specialist […]

Investec recruits four to boost fixed-income team

Investec Asset Manage-ment has made four key appointments to boost its fixed-income capability. The strengthened team, now with 25 people, is one of the biggest fixed-income teams in the retail market, with responsibility for more than £11bn in fixed-interest assets. John Stopford, the driving force behind Investec&#39s South African fixed income business, is now heading […]

Pink offers a taste of Freedom

PINK HOME LOANS Freedom Finance FS 1 Year Discount Type: Discounted-rate mortgage Discounted term: One year Discount:1%Payable rate:4.83% Minimum loan: £25,001 Maximum loan: Up to 90% of valuation subject to a maximum of £300,000, up to 75% of valuation subject to a maximum of £500,000 Income multiples: Based on affordability calculation and credit score Arrangement […]

Marr and Dornan take lead roles as Johnston leaves

Aegon&#39s decision to bring its IFA businesses together to form Origen heralds significant changes for the management of the five brands. Advisory & Brokerage chief executive Gareth Marr is becoming chief executive of the newly formed company and Aegon UK Distribution managing director Peter Dornan, who has overseen the purchase of the five IFA businesses […]

Guide cover resized

Guide: Johnson Fleming’s managed auto-enrolment service for SMEs

Johnson Fleming has launched its new managed auto-enrolment service, designed to support SME businesses of up to 250 employees. The managed auto-enrolment service is not just about providing businesses with a software system for them to manage themselves, but more about outsourcing the administration of the project and scheme to Johnson Fleming’s auto-enrolment staff.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm