VAT warning as brokers expand their services

Brokers have been warned that the switch to fees over commercial could have VAT implications if serv...

Brokers have been warned that the switch to fees over commercial could have VAT implications if services charged for, such as risk management, fall outside of the insurance contract definition.

Peter Staddon, head of technical services at the British Insurance Brokers' Association said VAT was not an issue for brokers unless they provided other services.

He said: "There is no VAT on fees per se if you're arranging an insurance contract. But other services, like risk management, are subject to VAT