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Tax Investigation Services - being told to charge VAT to clients

SussexAccountancySussexAccountancy Settling In NicelyRegistered Posts: 28

I am in the process of setting up my own business, with a handful of clients and still working full-time, so everything is pretty low-key, and am looking to gradually increase over this coming year. I have taken on a new client, who would like to continue with the Tax Investigation Service which was offered to him by his previous accountant. All fine, and have been looking at Abbey Tax (as it is the one he used) to start.

However, in the conditions it says that as I am offering a service I would have to charge VAT - which means that I would need to become VAT registered - my current understanding is that accountancy services re financial services are exempt, but this does not include bookkeeping, which is vatable?

Would someone be able to clarify the very simple query above, and confirm whether they have had the same issue when billing clients on a Tax Investigation Service. Becoming VAT registered would be a bit of a headache at this point, but I don't want to refuse a client - and from what I can see Tax Investigation Services are beneficial from all sides.

If someone could confirm I am correct in the following:

Accountancy Services are exempt as part of financial services
Bookkeeping services are not - (how do you begin to draw the line if this is the case?)
Does this mean that all MIPs with Tax Investigation Service are VAT registered?
Am I missing a point here?

Thanks as ever, for anyone's input,


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