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VAT Cost Sharing Exemption – Possible Inclusion into UK VAT Law

HMRC are currently considering enacting the VAT Cost Sharing Exemption. This is a provision of EC VAT law not currently applicable in the UK which allows businesses and organisations making VAT exempt and/or non-business supplies to form groups in order to achieve cost savings. The principal benefit of the exemption is that by removing a [...]

November 1st, 2011|Categories: NHS VAT News Archives|Comments Off on VAT Cost Sharing Exemption – Possible Inclusion into UK VAT Law

Recovering Contracted-Out Services (“COS”) VAT on Part of an Invoice

Some NHS Trusts have been advised in the past that where an invoice shows separate lines for different elements of a supply, these invoices cannot be apportioned or ‘split' in order to recover VAT on the eligible COS part. Although this may be true in some respects, this is not always the case as each [...]

July 1st, 2011|Categories: NHS VAT News Archives|Comments Off on Recovering Contracted-Out Services (“COS”) VAT on Part of an Invoice

VAT Penalty Regime – Further Guidance

In an article from November 2010, we informed you about the introduction of VAT penalties for the NHS for the first time from April 2011. To re-cap, the penalties are designed so that if a taxpayer takes ‘reasonable care’ when completing a return, they will not be penalised for an error. The penalties could range [...]

April 1st, 2011|Categories: NHS VAT News Archives|Comments Off on VAT Penalty Regime – Further Guidance

VAT Rate Increase to 20% from 4 January 2011

The standard rate of VAT is due to rise again from 17.5% to 20% on 4 January 2011. This rise in VAT may encourage NHS organisations to make large value purchases in December 2010 rather than in January 2011, but there are other ways to ensure that the lower rate of VAT is applied where [...]

January 1st, 2011|Categories: NHS VAT News Archives|Comments Off on VAT Rate Increase to 20% from 4 January 2011

Introduction of VAT Penalties to the NHS

HMRC have heralded a major change to the NHS VAT rules by announcing their intention for the first time to apply ‘penalties for VAT infringements’ for periods beginning on or after 1 April 2011. There have always been penalties for VAT errors made by other taxpayers but these have never before been implemented in the [...]

November 1st, 2010|Categories: NHS VAT News Archives|Comments Off on Introduction of VAT Penalties to the NHS

Potential Changes to VAT Treatment of Salary Sacrifice Schemes

The ECJ has recently given its judgement on questions from the UK VAT Tribunal in the case of Astra Zeneca, which provided employees with retail vouchers as part of their remuneration. Astra Zeneca argued that input tax on the purchase of these vouchers should be recoverable as a business overhead but that no VAT was [...]

September 1st, 2010|Categories: NHS VAT News Archives|Comments Off on Potential Changes to VAT Treatment of Salary Sacrifice Schemes

Latest VAT Re-Review Findings

By reviewing the exact time periods and types of VAT as our main competitor, we produce substantial additional results. The following table represents just eight of the latest contracted-out services (“COS”) VAT re-reviews which we have completed for the first nine months of 2009/10 (April to December) where the previous adviser had already carried out [...]

June 1st, 2010|Categories: NHS VAT News Archives|Comments Off on Latest VAT Re-Review Findings

Nursing Agency VAT Concession

NHS bodies should be aware of a newly published concession which may lead to a decrease in VAT being charged on nursing services which is currently eligible for recovery under the Contracted-Out Services ("COS") rules. HMRC have now permitted nursing agencies (or employment businesses providing nurses, midwives, and other health professionals) to exempt the supply [...]

April 5th, 2010|Categories: NHS VAT News Archives|Comments Off on Nursing Agency VAT Concession

VAT Recovery on Supplies of Nursing Staff – ODPs

As stated in the article above, it is common knowledge that NHS bodies are able to recover VAT incurred on supplies of nursing staff (including qualified and non-qualified nurses/healthcare assistants) under COS heading 41 and admin/clerical grade staff (including receptionists, secretaries, etc) under COS heading 69. However, in respect of temporary placements of health professionals [...]

April 4th, 2010|Categories: NHS VAT News Archives|Comments Off on VAT Recovery on Supplies of Nursing Staff – ODPs

Latest ‘Fleming’ VAT Update

Following on from the submission of Fleming/Conde Nast VAT claims (the first anniversary of the 31 March 2009 deadline having now come and gone), the claims submitted on behalf of NHS bodies still appear to have a long way to go before they are settled. At present, HMRC have stated that both the ‘Lennartz’ and [...]

April 3rd, 2010|Categories: NHS VAT News Archives|Comments Off on Latest ‘Fleming’ VAT Update