There are 2 separate companies for financial services. 1 being principal and the other an appointed representative.
Can anyone clarify how the VAT would work in the following scenarios.
The income is vat exempt.
1. Client belongs to AR. Agreed split 50/50. Income received by Principal. AR then charges Principal for their 50% cut. I presume this charge is VAT exempt.
2. Same scenario as 1 but income received by AR. Principal then charges AR for their 50% (the work has been undertaken by principals advisor). Is this charge still VAT exempt or is their VAT chargeable because of services provided to AR by principal?