Is there VAT on insurance recharges?

VAT

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Company A arranges business insurance for Company B and Company C, both unrelated.

Would Company A need to recharge B and C the premiums at the standard rate of VAT?

Many thanks

Replies (3)

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RLI
By lionofludesch
23rd Mar 2020 13:59

I'm guessing A isn't a licensed insurance broker.....

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chips_at_mattersey
By Les Howard
23rd Mar 2020 15:35

Company A may benefit from the exemption for an insurance intermediary. It depends on precisely what the company did to bring the other parties together to enter the contract of insurance.

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By paul.benny
23rd Mar 2020 17:52

You say A *arranges* insurance for B and C. Why can't B and C *pay* for the insurance themselves?

Is the insurance that is recharged part of some wider arrangement such as service charges on property?

If A has arranged and paid for the insurance, are B and C actually party to the insurance contract? If not, they may not be able to claim should the need arise.

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