Premium figures
- VAT premium figures for the period from 1 April, 2001 to 30 June, 2001, were sent out at the beginning of July 2001 by the LPSO Technical Services Data and Information section. If you have not received the premium figures please contact LPSO Technical Services on +44 (0)1634 392024.
- These should be used in determining the amount of input VAT that can be recovered by your agency when making VAT returns for the period ended 30 September, 2001.
- Following the revision of the Lloyd's VAT arrangements from 1 January, 2000, these figures should also be used by syndicates underwriting for the 2000 and/or 2001 year of account when making VAT returns for the period ended 30 September, 2001. For further information on the revised Lloyd's VAT arrangements please see market bulletin Y2158 below.
Reverse charge on imported services
The rates of exchange to be used to convert claims into sterling for the purposes of the imported service charge are as follows:
Month
|
US$
|
CAN$
|
EURO
|
AUS$
|
J Yen
|
SA Rand
|
Swiss F
|
July 2001
|
1.43
|
2.18
|
1.63
|
2.81
|
177.98
|
11.78
|
2.46
|
August 2001
|
1.45 |
2.25
|
1.60
|
2.76
|
172.61
|
12.23
|
2.42
|
Sept 2001
|
1.47
|
2.32
|
1.61
|
2.98
|
175.09
|
13.24
|
2.38
|
VAT incurred on claims from services supplied from within the UK
- Syndicates and managing agents can only recover UK VAT if it arises on a supply that has been made to an underwriter and the policyholder belongs outside the EU.
- As advised in the market bulletin of 16 January, 2001 (see bulletin Y2465 below), an audit by Customs and Excise found that the above condition was not being adhered to. It was agreed that Taxation Department would advise quarterly disallowance rates to be applied by all syndicates and managing agents on VAT on claims amounts and VAT on commissions on recoveries until Customs and Excise are satisfied that procedures are in place for reporting the correct amount of VAT.
- Customs & Excise have recently informed us that they are still not satisfied that the correct procedures are being followed but that they now no longer believe that it is appropriate for Lloyds to advise syndicates and managing agents of global disallowance rates. Accordingly, there will be no global disallowance rates this quarter. Customs & Excise want to look instead at the error rates at syndicate level. In the meantime, managing agents and syndicates are reminded to ensure that Box 20 of the LCCF is completed correctly.
Other information:
If you have any queries regarding the VAT premium figures report then please contact LPSO Technical Services Data and Information section on +44 (0)1634 392024. Other queries should be addressed to Harinder Sandhu in the Lloyd's Taxation Department on +44 (0)20 7327 5396.
Market bulletins:
