Brokers face tax on lead generation


A decision by Her Majesty’s Revenue and Customs (HMRC) to impose VAT on online and marketing services provided by introducer appointed representatives (IARs) will have a major impact on brokers according to industry figures.

The change prompted the British Insurance Brokers’ Association (Biba) to have discussions with financial services firm Deloitte which produced an update on the issue for insurance brokers in December 2014.

Its guidance states that HMRC considers that services provided by IAR