- HMRC announced a policy change on 18 June 2025 regarding VAT recovery for employers on pension scheme investment costs.
- Previously, employers could only recover VAT on administration costs, not investment costs.
- Employers had to apportion VAT for dual-use services between administration and investment.
- New policy allows all input tax on pension schemes to be deductible for employers.
- Trustees’ management services fees to employers will also have recoverable input tax.
- Businesses can claim additional input VAT from past four years.
- Partially exempt businesses may need to adjust their VAT recovery methods with HMRC.
Source: mha.co.uk
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.
