VAT on MPS Advice
arongunningham
Member
There's been many discussions over the years whether advisers should be charging their client VAT for advice where the recommendation is to use a DFM's MPS (not on platform).
With DFMs removing their own VAT for their MPS lately, do you think advisers could do the same?
Comments
Bit of a grey area indeed. There is a reasonable argument that if the MPS is an exempt service (albeit some of the DFM providers I understand have self-certified as exempt), then the advice could also be deemed to be exempt.
There is a review of VAT treatment of financial services and before doing anything it might be worth waiting for the outcome of this?
If it is off-platform, I think it will be outside of the recent challenges and wouldn't be within the intermediated services exemption. But it's definitely a grey, and evolving area.