View more on these topics

Rennison: FSA must lean on HMRC to provide clear guide to VAT

The FSA should put pressure on HM Revenue & Customs to produce a clear guide explaining when financial advice is liable for VAT, says The Ideas Lab director Roderic Rennison.

Speaking at the PIMS conference last week, Rennison said unless the regulator forces the issue with HMRC, uncertainties over when to charge VAT on advice will persist.

Rennison said: “The FSA must lean on HMRC to provide meaningful and definitive VAT guidance for the profession, by which I mean not just intermediaries but suppliers, life companies, fund management groups, platforms, software suppliers and, above all, distributor firms.”

He advised IFAs to speak to their tax adviser or accountant to clarify their position and to get any recommendations related to VAT-charging in writing.

Rennison added: “If you have not registered for VAT yet and plan to do so you should take advice on the manner in which you do that. Talk to your tax inspector, as firms seem to be facing the prospect of a retrospective VAT bill due to the suspicion that might arise around why a firm is registering for VAT now when they have not been registered before.”

Paladin Financial Services managing director Tim Purdon says: “This is an issue that should have been addressed by the FSA prior to the RDR or as part of the consultative process before telling IFAs they have to switch to a fee structure.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Julia Stevens 26th May 2011 at 9:56 pm

    Given that the FSA is a puppet of the Treasury, it certainly should be seeking clarification on this issue, though it seems extraordinary that it [the FSA] seems not to have considered and clarified this point before kicking off its RDR. Then again, isn’t this so typical of the FSA?

Leave a comment

Close

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

Email: customerservices@moneymarketing.com