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VAT on platform charges, or not as the case may be?
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SnowMan
Posts: 3,676 Forumite
HM Revenue & Customs has decided not to impose VAT on platform charges following industry negotiations.
http://www.moneymarketing.co.uk/news-and-analysis/wrap-and-technology/hmrc-rolls-back-over-vat-on-platform-charges/2006221.article
Must admit I don't understand what this all means. Anyone care to explain?
http://www.moneymarketing.co.uk/news-and-analysis/wrap-and-technology/hmrc-rolls-back-over-vat-on-platform-charges/2006221.article
Must admit I don't understand what this all means. Anyone care to explain?
I came, I saw, I melted
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They are saying advice, eg from an IFA or platform recommendation for personal circumstances, is VAT chargeable, but if the research which led to the same advice is freely available on the platform website as charts, comparison tables etc, that work is paid for as part of the execution only platform charge and non VAT chargeable?
Now if the platforms start splitting their charges to execution and advice then the advice charge will be VAT chargeable.
Like all our taxes, Sir Humphrey says it is all very simple, Minister! :eek: :eek: :eek:0 -
There's also the curiosity of HL charging VAT on top of the new £25 account closure fee but not on the new £25 charge for transferring out cash or for the £25 fee for each stock transferred out - probably perfectly logical to everyone but me.0
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The langcat are suggesting that ATS are looking at whether VAT is payable on their platform fee, and suggesting that investors might see a 20% reduction in platform charges as a result, for example from £90pa to £75pa for an ISA account.
http://langcatfinancial.co.uk/blog/I came, I saw, I melted0 -
They are saying advice, eg from an IFA or platform recommendation for personal circumstances, is VAT chargeable
advice is not vatable as long as it results in or has the initial intention of resulting in a product purchase.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
advice is not vatable as long as it results in or has the initial intention of resulting in a product purchase.
That's even more ridiculous, get your advice, buy a fund - no vat.
Get some advice, want to think it over, go home for a couple of weeks, come back and say, ok I'll buy what you recommended - no vat? (since it resulted in a sale).
Get advice, say don't fancy it now - vat?
How on earth do you police that? :rotfl:0 -
Get some advice, want to think it over, go home for a couple of weeks, come back and say, ok I'll buy what you recommended - no vat? (since it resulted in a sale).
Correct as the intention was there.
Still no VAT as the initial intention would have led to a product.Get advice, say don't fancy it now - vat?How on earth do you police that?
It's hasnt been. The vast majority of what an adviser does is classed as non-vatable or could be interpreted as such. Even a fund switch can avoid it as it results in the purchase of a fund. bed &ISA is purchase of an ISA.
Intention is more important than actual.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
advice is not vatable as long as it results in or has the initial intention of resulting in a product purchase.
A few decades ago, when VAT was 8% or 12.5.% I went to buy a knob.
The salesman asked at length what said knob was for, as knobs for cookers were 8% whereas those for amplifiers were 12.5%.
I bought a knob for my cooker and it fitted my amplifier a treat.
IFAs are quite clearly the knobs of our times.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »A few decades ago, when VAT was 8% or 12.5.% I went to buy a knob.
The salesman asked at length what said knob was for, as knobs for cookers were 8% whereas those for amplifiers were 12.5%.
I bought a knob for my cooker and it fitted my amplifier a treat.
IFAs are quite clearly the knobs of our times.
Cooker knobs are way better.
My amplifier knob only goes up to 10 but the cooker one goes all the way to 300..........
Do Money Saving sites make you buy more bargains - and spend more money?0 -
the best cookers only go up to 9. always leave them wanting more
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