View more on these topics

Peter Williams: HMRC VAT guidance not in line with tax laws

Industry consultant Peter Williams says HM Revenue & Customs’ RDR VAT guidance is not in line with its own tax rules but overhauling VAT on adviser charging was not a priority for the Government.

HMRC finalised its RDR VAT guidance earlier this month, which confirms advice will be exempt from VAT where clients are looking for a retail investment product.

Speaking at a Money Marketing RDR invitational event in London last week, Williams said the guidance was positive for the industry but may not ultimately be in line with VAT rules.

Williams said: “My view is HMRC has not given correct guidance on VAT and the statements it has made are actually in breach of its own VAT regulations. That is because they are very generous.”

He said pressure from the FSA and fewer resources at HMRC has meant tackling VAT on advice has not been a priority.

Scottish Life business development manager Fiona Tait said:

“I suspect HMRC is waiting to see if everybody switches over to offering pure advice services after the RDR. If that happens, it will not need to make any further statements but it will end up collecting the tax.”

Recommended

Another senior departure at Aviva Investors

Aviva Investors global head of products Jeremy Soutter is the latest big name to leave the firm following a restructure of its global workforce. Soutter joined Aviva in 1999, he was previously technical director at Henderson from 1990 to 1997. His departure follows that of Aviva Investors chief executive of the UK funds business John […]

Salary sacrifice is route to avoid child benefit cuts

Pension experts say the Government’s decision to cut child benefit payments for families with high-earners presents a salary-sacrifice tax-planning opportunity for advisers. In last week’s Budget, Chancellor George Osborne announced changes to child benefit rules that mean payments will start to be reduced for families where one member is earning more than £50,000. Osborne said […]

India: are further rate cuts on the horizon?

By Kunal Desai, head of Indian Equities, Neptune Kunal Desai, manager of the Neptune India Fund, discusses the key drivers of the Indian market’s outperformance and why he expects another rate cut, which will likely further support equities.  Read more here Important Information Investment risks The Neptune India Fund may have a high volatility rating […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment