fsa & vat

[auzzie]

I have been asked to do the books for a financial services company. I was told that financial services are exempt from VAT. (they typically deal with mortgages, loans and insurances) However, the director had heard that brokers fees are vatable. We are totally confused. The company is really a 'broker' and is licensed under the FSA. So should he be VAT registered? any help would be appreciated. Although i have many years experience as a bookkeeper i have never worked for a financial institution!

[Oneeyedvic]

should he be VAT registered - if he turns over more than �64,000 then he needs to be. Under that amount and he can choose.

I am a commercial finance broker and we are VAT registered. Lease agreements and some Arrangement fees are Vatable however Hire Purchase agreements and other arrangement fees (eg Commercial mortgages) are not.

Sorry, not much help - you can always call Customs & Excise - they do have a good helpline.