- HMRC has changed its guidance on VAT recovery for funded pension scheme costs.
- Previously, employers could often recover VAT on scheme administration even if trustees contracted and paid, as long as the employer had an invoice in its name.
- Under the new guidance, if the management contract is between the fund manager and the trustees, the trustees must charge the employer a taxable amount before the employer can reclaim VAT.
- This likely limits employers’ VAT recovery on administration and investment costs when contracts are held by trustees, unless specific alternative methods are used.
Source: jdsupra.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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