Lloyd’s market VAT arrangements

These arrangements have been agreed with HM Revenue & Customs and provide a framework for the treatment of VAT, including VAT recovery, for entities within the Lloyd's market.

Further details on specific reports and procedures associated with the Lloyd's VAT arrangements can be found below.

At the beginning of the month following the quarter end Velonetic (formerly “Xchanging”) provide Managing Agents with a premium VAT report detailing the value of UK and Non-UK supplies made by syndicates in the period. The values should be used to calculate the syndicate's VAT recovery rate. Please see the "Lloyd's VAT Arrangements" agreement for further details.

If you have any queries regarding reports or data provided by Velonetic, please contact them at:

Previously Velonetic provided claims expense data (formerly known as LPSO tabulation sheets) to Managing Agents detailing the value of claims expenses subject to the VAT reverse charge procedure as set out in sections 11.2 to 11.4 of the Lloyd's VAT arrangements. The current rate to be used in the calculation referred to in the arrangements is 0.04%. The resultant value should be reverse charged and treated as residual VAT. Most Managing Agents now use their own claims expense data for this calculation and therefore this report will only be available by request. A quote for the cost of obtaining a bespoke report can be provided by Velonetic.

If you have any queries regarding reports or data provided by Velonetic, please contact them at: