Our profound understanding of the pitfalls and issues businesses in the financial services industry face means we can give practical, realistic, advice to help you thrive.
The rules governing financial advisers are in the midst of a significant shift and as specialists in advising finance professionals, we understand intimately the impact this new regulatory framework around VAT will have.
Now HMRC has clarified its position, we can help with detailed information about the significant role VAT will soon play in the business of every financial adviser and how best to manage this demanding new obligation.
The regulator announced all IFAs would have to hold capital worth at least three months of their annual fixed expenditure, with a minimum of £20,000. The requirements will be phased in so by December 2013, firms have to hold a minimum of one month’s fixed expenditure or £15,000.
By 31 December 2014 this goes up to two months’ worth or £15,000 and three months’ worth or £20,000 by the end of 2015.
Although the deadlines have been extended, this still represents a significant burden on smaller firms, the vast majority of which have fewer than five advisers. Careful planning will be needed and firms should now be considering what resources they need to have in place.
Mortgage brokers have had a particularly difficult time over the last few years with a saturated market, lack of competitive products on the market, increased regulatory scrutiny and ease of online resources. Being able to adapt and manage cash flows has been crucial in guiding firms through these challenging times.
Firms must strive to outperform the competition and need professional advisers who understand and can advise on innovative strategies to ensure strong performing products can be built whilst ensuring the appropriate regulatory frameworks are in place.