NHS VAT News

Revision of the Intermediaries Legislation for the Public Sector

Last year, HMRC published a discussion document on improving the effectiveness of the intermediaries’ legislation (IR35). This has now been followed by a consultation document issued on 26 May with an end date of 18 August. The proposal in the consultation document is that the Government will reform the intermediaries’ rules for ‘off-payroll’ engagements of [...]

June 7th, 2016|Categories: NHS VAT News|Comments Off on Revision of the Intermediaries Legislation for the Public Sector

VAT Contracted out Services (COS) Guidance – Government departments and NHS bodies – Latest Tranche (2) issued 12 October 2015 – Common Questions

As you will be aware, the VAT government and public bodies manual (VATGPB) is being transferred from the HMRC website to GOV.UK. NHS bodies received an interim document which advised them to treat its contents as current guidance for the VAT Contracted – Out Services Headings. The document included some changes to the first tranche [...]

March 23rd, 2016|Categories: NHS VAT News|Comments Off on VAT Contracted out Services (COS) Guidance – Government departments and NHS bodies – Latest Tranche (2) issued 12 October 2015 – Common Questions

Advice on the correct timing for COS VAT recovery for NHS bodies

Our newsletter dated 12th June 2014 explained that HM Revenue & Customs (HMRC) had informed the NHS 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 [...]

July 30th, 2015|Categories: NHS VAT News|Tags: , , , |Comments Off on Advice on the correct timing for COS VAT recovery for NHS bodies

Further Changes To Contracted – Out Services (COS) VAT Rules – Guidance Update

  HM Revenue & Customs (HMRC) has now published the second ‘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 [...]

July 17th, 2015|Categories: NHS VAT News|Comments Off on Further Changes To Contracted – Out Services (COS) VAT Rules – Guidance Update

Changes to contracted-out services (COS) VAT rules – Heading 25 – Hire of reprographic equipment including repair and maintenance

As part of the ongoing review of the COS VAT guidance, HM Revenue & Customs (HMRC) has advised us that the next batch of COS guidance will confirm that VAT incurred on the hire, lease or rental of multifunctional devices which serve as printers, photocopiers and faxes is eligible for recovery under COS Heading 25.  This [...]

June 29th, 2015|Categories: NHS VAT News|Tags: , , |Comments Off on Changes to contracted-out services (COS) VAT rules – Heading 25 – Hire of reprographic equipment including repair and maintenance

Contracted-out services (COS) Heading 69 – Typing, secretarial, telephonist and clerical services including agency staff – no retrospective action

HM Revenue & Customs (HMRC) has now confirmed in a new letter issued to NHS Trusts that it does not intend to raise assessments to claw back VAT said to have been over-recovered under COS heading 69 in periods prior to 1st April 2014.  This is following the previous letter issued in February 2014, which [...]

June 23rd, 2015|Categories: NHS VAT News|Tags: , , , |Comments Off on Contracted-out services (COS) Heading 69 – Typing, secretarial, telephonist and clerical services including agency staff – no retrospective action

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