You may recall that on 29 September 2021, we uploaded an article to advise professional financial guardians’ that the sum of remuneration awarded was inclusive of VAT, and that for any accounts submitted from 1 November 2021 onwards, VAT would not be approved.
Since then, we have been in discussion with some of your colleagues, via the Law Society’s Mental Health and Disability Sub-Committee, and have now agreed to retract this decision. As a result, professional financial guardians can continue to claim VAT in addition to the sum of remuneration awarded, and it will be approved by this office.
Whilst there is no specific provision for VAT on remuneration within the Act, and in Scotland no formal or legal distinction in the legislation between a guardian who is, for instance, a relative, or where a solicitor (or accountant) is appointed as a financial guardian, we do acknowledge that your role is slightly different, and acknowledge the valuable work you do for incapable adults across Scotland, who have no family members able to step into this important role.
We will seek a remedy to this lacuna around VAT and professional appointments, when the legislation is reformed, and plan to work with you to review our “Uplifts” process this year.
In the meantime, we apologise for any confusion or inconvenience caused, whilst this matter was investigated further.