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HMRC have issued Revenue & Customs Brief 9/13 to address the VAT implications of regulatory changes that will affect the way employee benefit consultants, and others providing services to employers for the setting up and administration of workplace contract-based pensions, will be remunerated in the future.
It does not include services supplied to employers or trustees in respect of occupational pension schemes held through trusts.
HMRC have issued Revenue & Customs Brief 9/13 to address the VAT implications of regulatory changes that will affect the way employee benefit consultants, and others providing services to employers for the setting up and administration of workplace contract-based pensions, will be remunerated in the future.
It does not include services supplied to employers or trustees in respect of occupational pension schemes held through trusts.
Businesses affected by the changes – following the FSA’s retail distribution review – will have to establish the precise nature of the service supplied, and the recipient. Organisations that advise employers in relation to the setting up and/or administration of group personal pensions should charge standard-rated VAT to employers on services provided to them in return for consultancy charges or other fees. Employers will normally be able to recover the VAT on the services as input tax, subject to the partial exemption and input tax rules.
The VAT treatment of services provided to employees will depend upon the nature of the services provided (further guidance can be found in the Revenue’s VAT Finance and VAT Insurance manuals). Services to employees, even if paid for by the employer, will not generally attract input tax recovery.
