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HMRC internal manual

VAT Input Tax

Specific issues: when employers should charge output tax in connection with funded pension schemes

When the employer is not the sole trustee some costs may be reimbursed by or charged to the trustees. If the costs are for management services the employer should not charge output tax. This is because these costs are their own business costs.

However, the employer must account for output tax where similar arrangements are adopted for services that consist of investment advice or other services connected with the pension fund’s own business activities.