CRS

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So far CRS has created 114 blog entries.

VAT on Pathology Services

The High Court has released its judgment in a recent case brought by GSTS Pathology LLP and others, against HMRC’s decision to change the VAT treatment of out-sourced pathology services. GSTS is a public-private joint venture between Serco Ltd and two NHS Trusts, which was established to supply out-sourced pathology services to the NHS. HMRC [...]

July 3rd, 2013|Categories: NHS VAT News Archives|Comments Off on VAT on Pathology Services

‘Fleming’ VAT Claims – Update

Following the judgment of the House of Lords in the joined cases of Fleming/Condé Nast in 2008, many NHS Trusts submitted VAT claims to HMRC for input VAT which had been under-recovered, or output VAT which had been over-declared, in prior accounting periods. Some types of claim have been accepted by HMRC, such as those [...]

July 2nd, 2013|Categories: NHS VAT News Archives|Comments Off on ‘Fleming’ VAT Claims – Update

Withdrawal of the VAT Research Exemption

NHS organisations should also be aware that the VAT exemption for business supplies of research to other ‘eligible bodies’ (such as universities and charities) will be withdrawn from 1st August 2013. The decision follows a notification from the European Commission that the exemption does not comply with European law. Currently, business supplies of research between [...]

July 1st, 2013|Categories: NHS VAT News Archives|Comments Off on Withdrawal of the VAT Research Exemption

Revised Contracted-Out Services (“COS”) Heading 37 Guidance

HMRC has just released revised guidance on COS heading 37, which supersedes guidance that it had previously issued to NHS organisations in May 2012. This previous guidance stated that VAT could only be recovered on the supply of maintenance services for leased equipment if this maintenance was provided by a separate supplier to the one [...]

March 1st, 2013|Categories: NHS VAT News Archives|Comments Off on Revised Contracted-Out Services (“COS”) Heading 37 Guidance

VAT Reclaim Opportunity for Over-Paid Parking Charges

The First Tier Tax Tribunal (‘FTTT’) has recently held that where a customer over-pays for parking, the excess amount paid is to be treated as an ex-gratia payment, not subject to VAT. This offers the opportunity for NHS Trusts to make a protective VAT reclaim where they have accounted for output VAT on over-payments received [...]

December 1st, 2012|Categories: NHS VAT News Archives|Comments Off on VAT Reclaim Opportunity for Over-Paid Parking Charges

Planned Changes to Contracted-Out Services (“COS”) Heading 69; Typing, Secretarial, Telephonist and Clerical Services Including Agency Staff

In our last newsletter, we advised that the scope of VAT recovery under this COS heading is likely to be changing. It has always been common practice for NHS bodies to recover VAT on supplies of admin and clerical agency staff under COS heading 69. We now understand that HMRC plan to revise this interpretation [...]

October 3rd, 2012|Categories: NHS VAT News Archives|Comments Off on Planned Changes to Contracted-Out Services (“COS”) Heading 69; Typing, Secretarial, Telephonist and Clerical Services Including Agency Staff

COS Heading 37 Compliance Checks

Many NHS bodies are currently undergoing a compliance check from HMRC on VAT recovered under COS heading 37. This is a follow-up to the previous letter from HMRC of May 2012 concerning VAT recovery under COS heading 37 and whether this is in relation to leased equipment and if so, whether it is by the [...]

October 2nd, 2012|Categories: NHS VAT News Archives|Comments Off on COS Heading 37 Compliance Checks

Changes to the VAT Liability of Self-Storage

The VAT liability of self-storage has changed with effect from 1 October 2012. Under the previous rules, the provision of a clearly defined space for the self-storage of goods was VAT exempt (as a supply of land) unless the self-storage operator had ‘opt to tax’ the land/building. Providers of other types of storage services (such [...]

October 1st, 2012|Categories: NHS VAT News Archives|Comments Off on Changes to the VAT Liability of Self-Storage

Changes to Contracted-Out Services (“COS”) Heading 69; Typing, Secretarial, Telephonist and Clerical Services Including Agency Staff

We have learnt that the scope of VAT recovery under this COS heading is likely to be changing. It has always been common practice for NHS bodies to recover VAT on supplies (from staff agencies) of admin and clerical staff under COS heading 69. Up until around 2007, it was in fact common practice for [...]

August 4th, 2012|Categories: NHS VAT News Archives|Comments Off on Changes to Contracted-Out Services (“COS”) Heading 69; Typing, Secretarial, Telephonist and Clerical Services Including Agency Staff

Salary Sacrifice – Lease Cars

As stated in an earlier newsletter, HMRC have been considering their policy concerning the interaction of the NHS COS VAT rules (in particular, COS heading 26; Hire of vehicles including repair & maintenance), and the 50% blocking order VAT restriction on lease cars (applicable to the car lease but not the maintenance). This review is [...]

August 3rd, 2012|Categories: NHS VAT News Archives|Comments Off on Salary Sacrifice – Lease Cars