CRS

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So far CRS has created 108 blog entries.

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

GP Practice Charges for Assisting in Setting Up Clinical Commissioning Groups (“CCGs”)

We have had some further guidance from HMRC on the matter of GPs charging for advice on setting up CCGs. HMRC have in the past advised GP practices that VAT should be charged (depending upon registration limits, etc) for these services. Furthermore, provided the work is of an advisory nature, the VAT should be recoverable [...]

August 2nd, 2012|Categories: NHS VAT News Archives|Comments Off on GP Practice Charges for Assisting in Setting Up Clinical Commissioning Groups (“CCGs”)

Royal Mail Cleanmail

Some of the Royal Mail’s postal services became subject to VAT from 2 April 2012, including Cleanmail. We asked HMRC the question back in March whether VAT would be recoverable by NHS bodies on these taxable mailing services and was advised as follows: HMRC stated that COS heading 13; Collection, delivery and distribution services – [...]

August 1st, 2012|Categories: NHS VAT News Archives|Comments Off on Royal Mail Cleanmail

VAT Recovery on Leased Equipment

HM Revenue & Customs (“HMRC”) has recently issued a letter to NHS bodies stating their policy on contracted-out services (“COS”) VAT recovery on leased equipment. In summary, this simply re-iterates the rule (which we included in our newsletter of July 2011) that NHS bodies are only permitted to recover VAT on the maintenance of leased [...]

June 2nd, 2012|Categories: NHS VAT News Archives|Comments Off on VAT Recovery on Leased Equipment

VAT on Recharges of Staff

Determining the VAT liability of supplies of staff is far from straightforward and we are frequently asked by our clients whether VAT should be charged. The relevant legislation is not particularly clear on the point and with the advent of penalties for the NHS, clarifying the issue is a means of taking reasonable care. The [...]

June 1st, 2012|Categories: NHS VAT News Archives|Comments Off on VAT on Recharges of Staff

ECJ Decision on Period of Limitation of Reimbursement of Incorrectly Paid VAT

The ECJ has ruled in the case Banca Antoniana Popolare Veneta (BAPV)(C-427/10) that the normal time limits for a supplier to claim a refund of VAT overpaid to tax authorities could be extended under certain conditions. The case involved a change of VAT treatment of a supply of services, where the treatment was thought initially [...]

February 4th, 2012|Categories: NHS VAT News Archives|Comments Off on ECJ Decision on Period of Limitation of Reimbursement of Incorrectly Paid VAT

Salary Sacrifice – A Bit More Guidance on Taxable Schemes

The following sets out how to properly account for VAT on cycle to work schemes from January 2012, plus some further commentary on the difficulties surrounding lease car schemes. General Rules HMRC Brief 28/11 stated that deductions under salary sacrifice schemes would become subject to VAT where applicable from the 1st January 2012. Trusts already [...]

February 3rd, 2012|Categories: NHS VAT News Archives|Comments Off on Salary Sacrifice – A Bit More Guidance on Taxable Schemes