A client of mine is an authorised e money institution and provides payment account services. They receive money from individuals and corporates and hold them in a client account. They then take commission from this money and settle the amount to the corresspondent bank. They have asked whether they can register for vat and claim back input vat on their expenses.
I looked up on HMRC website and think that becuase they are into financial services their supply is exempt and hence they cannot register for vat.
Does anybody have experience with this kind of businesses whenther they can register for vat?
Appreciate any help.