Outsourcing is, arguably, the most important single issue at present for many in the finance and insurance sectors. Today's commercial pressures mean businesses are continually looking for ways to cut costs and/or do things more efficiently and sharing functions or farming-out all or part of day-to-day administration is a common option that is explored. Unfortunately, this can come at a price. Something that is done VAT-free, or relatively so, in-house may suddenly attract a tax charge:

accounting and administration;

the supply or sharing of staff;

customer services and call centres; and

other back-office functions,

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