VATINS4810 | Insurance underwritten at Lloyd’s of London: syndicates and reverse charges

Certain expenses, including imported services subject to the reverse charge, are incurred centrally by Lloyd’s and passed on to the syndicates to be included in their quarterly VAT calculations in accordance with the LVA.

If a UK business receives services to which the reverse charge applies, it is the business i.e. the customer, who must account for the VAT due.

More information on the reverse charge can be found in

• VAT Notice 741: Place of supply of services (before 1 January 2010) (HMRC website) and

• VAT Notice 741: Place of Supply of Services (HMRC website).

Details of these expenses are advised by Xchanging (outsourcer for the bureau function) to the syndicates by electronic signings (historically it was hard copy). Where these details are provided electronically, primary documentary evidence is held by Xchanging and is subject to separate assurance arrangements carried out by the Lloyd’s assurance team in London Large Business Services.