Advice on VAT Registration for Insurance Broker

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Hi

I am setting up an insurance brokerage and will be paying out significant amounts of VAT on bought in items such as software, outsourced call centre and outsourced marketing.

However, as an insurance broker I won't be charging VAT on the (exempt) insurance sales I make.

At first glance HMRC site states that businesses witnin exempt lines (i.e. insurance) can't (in most cases) register for VAT and the online registration doesn't cater for my circumstances as there isn't an option for exempt sales.

I'm aware that some larger brokers are registered for VAT and would therefore appreciate if anyone can advise whether it is viable in my circumstances and how to go about it.

Many thanks.

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[midgetman]

Hi

I am setting up an insurance brokerage and will be paying out significant amounts of VAT on bought in items such as software, outsourced call centre and outsourced marketing.

However, as an insurance broker I won't be charging VAT on the (exempt) insurance sales I make.

At first glance HMRC site states that businesses witnin exempt lines (i.e. insurance) can't (in most cases) register for VAT and the online registration doesn't cater for my circumstances as there isn't an option for exempt sales.

I'm aware that some larger brokers are registered for VAT and would therefore appreciate if anyone can advise whether it is viable in my circumstances and how to go about it.

Many thanks.

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Very similar to the position I am in, I have to pay VAT on call centre costs, items bought etc but as my business is VAT exempt i cant charge VAt on the leads i sell, i just have to swallow the costs.
If you looking for leads in the future pm me, maybe we can do some business

 

[TaxesClear Ltd]

Hi,

If you are providing quotes and filling in forms for clients then your services will be exempt from VAT.

There was a case recently where introductory commission were chargeable for VAT, see here:

http://www.hmrc.gov.uk/briefs/vat/brief6907.htm

If you can fall into its definition, you can claim back input VAT

This only applies in my view to Compare Web sites which will take commission if a client contact and arranges the insurance directly with the Insurance Company.

Hope this helps

Regards,
Dennis

 

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Hi Dennis

Thanks for the tip, as I will be an intermediary looks like I will have to take the hit on VAT input unless I go for partial exemption although seems won't be that worthwhile in my case.

Regards.

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