HM Treasury have completed their review of the COS headings and a revised direction will be issued in the very near future. We shall publish the revised list applicable to the NHS as soon as this becomes available. In the meantime, HMRC have given early notification to a couple of changes which will have retrospective effect back to 1 April 2006.
COS Heading 14
Due to constant changes in IT, it has been recognised that the types of IT services purchased are becoming increasingly removed from the IT services once performed in house.
The revised direction therefore replaces:
Computer services supplied to the specification of the recipient, including the provision of a fully managed and serviced computer infrastructure
Computer services supplied to the specification of the recipient including:
- the provision by one or more suppliers of a fully managed and serviced computer infrastructure either using the recipients’ own hardware or hardware provided by the supplier as part of the infrastructure; and
- the development, delivery and support of bespoke software.
- supply and support of off-the-shelf software;
- hire of hardware alone;
- line rental alone;
- telephony; and
- hire of computer consultants to add expertise to in-house IT teams.
It is hoped that this new wording makes more explicit what services and procurement arrangements are covered and the sort of services that are not.
COS Heading 37
The actual wording of the heading remains the same; ‘Maintenance, repair and cleaning of equipment, plant, vehicles and vessels;.’ HM Treasury has additionally confirmed that recovery of VAT under can be extended to equipment, plant, vehicles and vessels leased from a separate supplier to the one providing the maintenance. Recovery on this basis can be made with effect from 1st April 2006. Previously recovery was restricted to equipment, plant, vehicles and vessels owned by a department.