CRS

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So far CRS has created 108 blog entries.

Changes to Contracted-Out Services (COS) VAT Rules – Guidance Update

HM Revenue & Customs (HMRC) has now published the first ‘wave’ of the revised single book of COS VAT guidance for Government departments and NHS bodies, following the review of interpretation of the rules. This has gone live on GOV.UK. The external link which takes you directly to the Contracted Out Services guidance is http://www.hmrc.gov.uk/manuals/vatgpbmanual/VATGPB9700.htm [...]

March 2nd, 2015|Categories: NHS VAT News|Tags: , , , , , , , , , , , , , , , |Comments Off on Changes to Contracted-Out Services (COS) VAT Rules – Guidance Update

Fleming VAT Claims – Encouraging Development

The First Tier Tribunal (FTT) has published its findings in respect of North Lincolnshire and Goole NHS Foundation Trust appeal. This is encouraging news for NHS Trusts which still have outstanding ‘Fleming’ VAT claims which are dependent upon HMRC accepting ‘entitlement’. We submitted claims to HMRC on our client’s behalf back in 2009, for various [...]

Changes to Contracted-Out Services (COS) VAT Rules – Update

As most NHS bodies are aware, HM Revenue & Customs (HMRC) has been actively reviewing the interpretation of the Treasury Direction COS VAT guidance.  This is following the aborted attempt earlier this year to impose the more restrictive Government Department (GD) rules on the NHS.  At the time, HMRC was forced to back down and [...]

December 9th, 2014|Categories: NHS VAT News|Tags: , , , , , , , , , , , , , , , |Comments Off on Changes to Contracted-Out Services (COS) VAT Rules – Update

‘Reed’ VAT Claims – Update

We have outlined in previous newsletters details of the Reed Employment Tribunal case and the potential opportunity to submit claims for VAT incurred on the cost of agency staff that may prove to have been overpaid. The Tribunal decision back in 2011 suggested that an employment agency should only charge VAT on the commission fee [...]

December 8th, 2014|Categories: NHS VAT News|Tags: , , , , , , , , , , , , |Comments Off on ‘Reed’ VAT Claims – Update

Tax Point Rules – Temporary ‘Relaxation’ in HM Revenue & Customs’ Approach

HM Revenue & Customs (HMRC) issued a letter to the NHS in December 2013 stating that the proper tax point (time of supply) rules should be applied to Contracted-out services (COS) VAT recovery.  This meant that COS VAT should be claimed on the VAT return for the period in which the invoice is dated, or [...]

June 12th, 2014|Categories: NHS VAT News|Tags: , , , , , , , , , , , , |Comments Off on Tax Point Rules – Temporary ‘Relaxation’ in HM Revenue & Customs’ Approach

Public Accounts Committee Hearing

In our October 2013 newsletter, we reported that HMRC is undertaking an investigation in to a number of VAT schemes used by NHS Trusts, which involve the hire of locum doctors and other staff on short-term employment contracts that fall outside the scope of VAT. HMRC’s Director-General for Business Tax, Jim Harra, has confirmed that [...]

November 3rd, 2013|Categories: NHS VAT News Archives|Comments Off on Public Accounts Committee Hearing

HFMA VAT Committee Update – September 2013

The HFMA has now published the minutes of the September 2013 meeting of its VAT technical sub-committee, attended by representatives of the VAT profession, HMRC and NHS Trusts. No new VAT developments were announced, but the Committee did discuss several proposed changes to the NHS VAT rules, including the following; a ‘Framework’ agreement for the [...]

November 2nd, 2013|Categories: NHS VAT News Archives|Comments Off on HFMA VAT Committee Update – September 2013

EU Commission: Consultation on the Future of Public Sector VAT

Another recent development is the launch of a consultation exercise by the EU Commission on the future of EU VAT rules for public sector bodies and activities in the public interest. As part of this exercise, the Commission has published a consultation document which sets out what it sees as the main issues, namely; possible [...]

November 1st, 2013|Categories: NHS VAT News Archives|Comments Off on EU Commission: Consultation on the Future of Public Sector VAT

VAT-Efficient Staffing Models – Government Warning To NHS Trusts

In a letter to the Recruitment and Employment Confederation (REC), Treasury minister Danny Alexander has warned NHS Trusts against using artificial arrangements designed to avoid paying VAT on locum staff charges. This follows news reports about schemes used by a number of NHS Trusts, which involve the hire of locum doctors and other staff on [...]

October 3rd, 2013|Categories: NHS VAT News Archives|Comments Off on VAT-Efficient Staffing Models – Government Warning To NHS Trusts

Case Alert: VAT Treatment of Locum Doctors

The VAT treatment of locum medical staff has also been recently examined in the case of Rapid Sequence Ltd v. HMRC, which was heard before the First-tier Tax Tribunal (FTT). Rapid Sequence Ltd (the Company) was an employment business supplying locum doctors to NHS Trusts as a principal. The locum doctors operated either as self-employed [...]

October 2nd, 2013|Categories: NHS VAT News Archives|Comments Off on Case Alert: VAT Treatment of Locum Doctors